Relationship Between Board Characteristics And External Audit Requirements

Since the separation of ownership,the audit came into being which plays an important role,however,in recent years increased failures came with the audit,the audit turn into the public.Based on the analysis of the audit market,here comes the needs of the audit issues.And taking into account of responsibilities of the Board,here comes the proposed role of the board,and ultimately leads to the board characteristics as an entry point.Specifically,mainly from the company’s point of view,the article studies the reaction mechanism of the Board Governance effect,which trying to seek ways to improve the company’s board of directors control effect.Based on the previous studies,after considering the characteristics of the board independence,professionalism basic,diligence,stimulation and scale,gender joined the board structure of the index,and the board’s professional is already redefined.Then study the effect of the Board of Directors on the audit requirements of the characteristics,which trying to explore the board of directors’ species traits which can contribute to a company that produces high of audit needs to actively guide the optimization of the Board of Directors.Thereby actively guide companies to improve the audit requirements,and finally study the economic consequences of high quality audit requirements.That is,whether the agent can act to lower costs and enhance enterprise value or not.In research methods,the paper selected 2012—2014 of China’s A-share listed company’s board as the initial study sample,after handling,and used multiple linear regression and Logistic regression methods to verify hypotheses proposed based on the above research.The results show that the independence and diligence of the board do not have significant effect,and the Board of Directors of professionalism and stimulation governance significant effect,and the scale and gender structure of the board has an negative effect,while in the audit needs,professionalism and motivation of the Board sex helps companies improve the of audit needs,but the former is not significant,the latter is significant.The board size and sex structure is not conducive to improving the high quality audit requirements.Based on this article,we submit proposals and follow-up researches.