Research On The Influence Of Audit Committee's Financial Expert Characteristics On Audit Pricing

The audit committee system is a very important part of the contemporary corporate governance structure and a key institutional arrangement.The audit committee concentrates on the supervision function of part of the board of directors and tries its best to guarantee the quality of internal control,internal and external audit and the company's financial reports.The system of audit committee has been developed and improved gradually in the face of repeated financial fraud cases at home and abroad.From the perspective of development trend,corporate governance norms set increasingly strict standards for the independence and professional competence of audit committees.The foreign audit committee system originated from the United States,and after a series of development and deepening,it has formed rich theoretical research and practical application results.On the basis of drawing lessons from foreign experience and combining with the domestic economic situation,China has introduced the audit committee system into corporate governance,which has become an important supplement to the supervision and restriction mechanism.Chinese scholars of the new system in our country also "be born" conditions were studied,the existing literature mainly focused on the influence factors of the audit committee shall establish a comprehensive,the audit committee of the characteristics of research,and the independence of the audit committee,and degree of industry,choose just one kind of independent director,or conduct the thorough research to the independent director of a feature in the literature is not much,independent directors with financial background as a breakthrough point of the research is more rare.Therefore,from the perspective of audit pricing,this paper takes independent directors with financial background in the audit committee as the research entry point.Based on the empirical data of all a-share listed companies in Shanghai and Shenzhen during 2013-2017,the influence of different characteristics of financial experts of the audit committee on audit pricing was investigated.The specific characteristics of financial experts--number of independent directors with financial background,working background,gender and length of tenure were classified in detail.Using the empirical research method,this paper explores the different impacts of financial expert characteristics of audit committee on audit pricing under different ultimate ownership forms,different industries and different internal control effectiveness.The research draws the following conclusions:(1)The more the number of financial experts in the audit committee,the higher the audit pricing;the number of female financial experts in the audit committee is negatively correlated with the audit pricing;the financial expert practice and academic background have a lowering effect on audit pricing,government background finance Experts have an improvement role;the term of financial experts is negatively correlated with audit pricing.(2)Internal control has a regulating effect.(3)The manufacturing industry is consistent with the industry-wide results.The audit pricing of the information technology industry and the real estate industry only has a significant relationship with the financial experts of some audit committees.(4)The number of financial experts and term of state-owned enterprises are significantly higher than those of non-state-owned enterprises,and gender and background are more significant for non-state-owned enterprises.The study of this paper has certain theoretical and practical significance:firstly,it is the basic responsibility of the audit committee to hire an external audit institution and agree on audit pricing.By studying the specific impact of the characteristics of financial members of the audit committee on audit pricing,this paper can analyze the characteristics of members that are more in line with the objectives set by the audit committee,deeply study the problems existing in the audit committee system,and provide useful empirical evidence for the reform of the audit committee system.Secondly,according to the duality of the influence,it provides some favorable Suggestions for the accounting firm and the auditee to negotiate audit pricing.