An Empirical Study On The Relationship Between Audit Committee And Audit Quality

In this paper,the relationship between the internal characteristics of the audit committee and the audit quality is studied.The appropriate characteristics are selected as variables and empirical studies are carried out to explore which characteristics of the audit committee can really affect the audit quality.In view of the current status of the development of the audit committee,on the premise of improving the audit quality,relevant suggestions are put forward for the continuous improvement of the construction of the audit committee.After reviewing the relevant literature at home and abroad,this paper finds that it has been more than ten years since the introduction of audit committee system in 2002.Up to now,all listed companies in China have set up audit committees and formed a basic and complete system for the work of audit committee.The audit committee plays an active role in strengthening internal control,managing internal audit and supervising the quality of financial reports.Based on this point of departure,the study found that most domestic and foreign scholars' research shows that the quality of audit will be affected by the establishment of audit committee,and most of the research results show a significant positive impact.However,in terms of the characteristics of audit committees,empirical research is still slightly inadequate,and the characteristics of the selected audit committees are less,and the representation is insufficient.In terms of the characteristics of the audit committee,this paper chooses four characteristics:the number of members of the audit committee,the proportion of independent directors,the chairperson of the audit committee of the audit committee held by women and the number of meetings(activity)of the audit committee,and chooses the size of the auditor firms hired as the measurement index of the audit quality,establishes four multiple linear regression models and tests the regression.Empirical research shows that the proportion of independent directors in audit committees is positively correlated with the size of firms employed by companies.The stronger the independence of audit committees,the bigger and better-reputable firms will be more favored by companies when choosing external audit institutions to ensure higher audit quality.The chairperson of audit committees is a woman who serves as the public.There is a significant positive correlation between the size of the firms hired by the Division and the number of independent directors in the audit committee.When the female independent directors are chairmen,the audit committee has stronger performance and effectiveness.The selection of external audit institutions tends to be larger accounting firms to ensure a higher quality of financial reporting,thus affecting the audit quality.The number of members of the audit committee will significantly affect the company's engagement.The size of the firms,the size of firms employed by the company and the number of members of the audit committee are significantly positively correlated.The better firms employed by the company,the higher the audit quality.The characteristics of other audit committees selected in the study are not significantly correlated with the audit quality after empirical research.Through empirical test,this paper analyses the relationship between audit committee characteristics and audit quality,and explores the level of its impact.It tries to find out the key characteristics that affect audit quality from the internal characteristics of audit committee,and puts forward relevant suggestions to improve the construction of audit committee,so as to enhance the effectiveness of audit committee.