Research On Audit Committee Characteristics,Auditor Industry Specialization And Audit Quality

In recent years,the financial fraud incidents occurred in the domestic and foreign frequently,and the independence of external auditors has been questioned by outsiders.So the internal governance of the company has been valued and the audit committee has emerged.The primary responsibility of the audit committee members is to ensure the quality of the audit by selecting external auditors and ensuring their independence.Studies have shown that an effective audit committee can improve audit quality,the industry expertise of external auditors can also improve audit quality,then Can improve the quality of auditing of the audit committee selects auditors with industry expertise?Exploring and verifying the mechanism of action between the three variables is of great significance for optimizing China's audit market and internal corporate governance mechanisms.Firstly,this paper clarifies the inherent logical relationship of the audit committee characteristics,auditor industry expertise and audit quality that based on the analysis of domestic and foreign literature and the analysis of principal-agent theory,learning curve theory and insurance demand theory.Secondly,taking the A-share listed company of Shenzhen and Shanghai Stock Exchange in the five industries of high-tech industry from 2013 to 2017 year as the research object,with 2654 data as the final sample,using multiple regression models,the relationship between audit committee characteristics and audit quality and the regulatory effect of auditor industry expertise were explored.Finally,based on the research results,this paper puts forward relevant suggestions that the audit committee and the auditors work together to systematically improve the audit quality.The study found:(1)there is a significant relationship between the characteristics of the audit committee and the quality of the audit.Among them,the independence and diligence of the audit committee are negatively related to the audit quality.The relationship between the expertise of the audit committeeand the audit quality is positive,which indicates that there is the faculty in the internal governance of the audit committee of high-tech industry listed companies in China;(2)The auditor industry expertise has a certain role in promoting for The relationship between the characteristics of the audit committee and the audit quality,but the auditor industry expertise only plays a significant role in regulating the relationship between the professional nature of the audit committee and the audit quality.When audit committee members perform their duties effectively,auditors with industry expertise are better able to improve audit quality than auditors who do not have industry expertise;when audit committees are ineffective,they may exacerbate audit collusion and thereby undermine audit quality.The main contributions of this paper are,comprehensive literature review and theoretical analysis,revealing the mechanism of audit committee characteristics,auditor industry expertise and audit quality.The characteristics of the audit committee are characterized by independence,expertise and diligence.The auditor industry expertise has a certain regulatory effect on the relationship between audit committee characteristics and audit quality,which provides empirical support for the three mechanisms and provides new ideas and new ways for improving audit quality.