CEO Power,Professional Competence Of Audit Committee And Audit Fees

Audit fee are the price paid by the listed company to obtain the audit services provided by the accounting firm,reflecting the balance between supply and demand of audit services between accounting firms and listed companies.Whether the audit fee is reasonable is very important to the listed companies and the accounting firms.For the accounting firm,the audit fees paid by the audit services must be able to make up for the audit costs,but also to make up for the CPA audit risk.For listed companies,the payment of reasonable financial costs can affect audit independence and quality of service,and improve the quality of financial information disclosure of listed companies and authenticity,is conducive to the users of financial information on the basis of the financial information to make reasonable economic decisions.As an important institutional arrangement,the audit committee can effectively improve the internal governance environment of listed companies and improve the financial quality of listed companies.According to the "guidelines for the governance of listed companies",the audit committee of listed companies should ensure independence and professionalism.The audit committee is required to have at least one financial expert,and Professional members of the audit committee by virtue of its financial skills are effective to identify and solve the internal governance of Listed Companies in terms of vulnerability,to inhibit the earnings management behavior,improve the quality of information disclosure has important significance to protect the authenticity and reliability of financial information.Good quality of internal control,can be used as a substitute for external auditing,to a certain extent can reduce the auditor needs to provide audit procedures and scope,reduce the risk of material misstatement,thereby reducing the auditor's audit fees.But the play the role of the audit committee cannot do without with the management,when the CEO power is larger,the abuse of power in order to tend to the intervention and control of bear the responsibility for supervision of the audit committee,the audit committee can not play their professional advantage.This article selects 2010-2014 Shanghai and Shenzhen A shares two listed companies of the 902 data as the research sample,through empirical research methods,investigates the relationship between the CEO power,the audit committee of professional and audit fees three,Research findings show:(1)The audit committee is significantly negatively related to the audit fees of the listed companies,that is,the stronger the audit committee is,the lower the audit fees the listed companies need to pay;(2)When the CEO power is too large,it will inhibit the audit committee to play professional,thereby reducing the audit committee of the professional audit fees for the negative role of mediation;(3)Further study found that,compared with the state-owned enterprises,the CEO power of non-state-owned enterprises is more powerful,and the inhibition effect of the audit committee is more significant.