Study On The Relationship Between Audit Committee Characteristics And Remediation Of Internal Control Weaknesses

The promulgation of the "Basic Norms of Enterprise Internal Control" is an important milestone in the history of China's internal control system construction.The internal control information disclosure system has gradually evolved from voluntary to mandatory after nearly a decade of development.However,the internal control weaknesses of listed companies in China are still serious.The existence of internal control weaknesses will lead to a series of adverse effects,such as increasing financing costs,risks and reducing the quality of accounting information.As an important institution under the board of directors to review the internal control and supervise the effective implementation of internal control,the audit committee plays an important role in the remediation of internal control weaknesses.In view of this,this paper has collected the listed companies that disclose internal control weaknesses from 2012 to 2017.By observing whether these companies repair the weaknesses in the next year,the empirical test examines the impact of a series of audit committee characteristics on the remediation of internal control weaknesses.The results show that the chairman of the audit committee plays a key role in the remediation of internal control weaknesses,and the chairman's influence is an important guarantee for the audit committee to fully play its supervisory role.The professionalism of the audit committee has a significant positive impact on the remediation of internal control weaknesses,and compared with knowledge-based financial experts,practical financial experts and industry experts play a greater role in the remediation process.The relationship between audit committee independence and the remediation of internal control weaknesses has not been verified.CEO as an audit committee member helps remediation the internal control weaknesses.In addition,this paper also analyzes and verifies that the legal knowledge level and salary level of the audit committee can also improve the performance effect of the audit committee to some extent and promote the remediation of internal control weaknesses.