The Empirical Study On The Relevance Between Corporate Governance And Audit Requirements

In recent years,as China's capital market development,people have paid more attention to the audit quality.Things were found in the literature at home and abroad,such as:corporate governance is a variety of mechanisms,which is a modern solution to the company's problems caused by the separation of ownership and control of the agency;external Audit can alleviate the proxy conflict of the listed companies,and it is also a means of corporate governance to reduce agency costs;the corporate govemance's supervision arrangements decide the extemal auditor's appointment,so external audit is a part of the corporate governance;and the most fundamental way to improve the audit quality is to improve the quality of listed companies on the audit services of their own needs.To improve audit quality and to raise the level of corporate governance,we should realize that to research the corporate governance factors affecting the quality of the audit has a double meaning.In this paper,firstly,we analyze theories:we analyze the current state of corporate governance;the corporate governance is divided into three areas—equity management,control of the board,board of the supervisors; secondly,we analyze six theories of the audit requirements,and we explore theory relations of the corporate governance and the demand of audit; finally,we come to the conclusions that we must improve the company's high—quality audit services to their own needs,to improve audit quality. Based on this theory,taking correlation tests,descriptive statistics and Logit regression,this article proves the impacts of corporate governance that affect the audit requirements from the perspective of evidence.We realize that:state—owned shares,state—owned nature of the ultimate controller and corporate shares at home and abroad have a significant negative correlation with high—quality audit;Internal employee shares, changes in share capital,concentration of ownership and balances of ownership have a significant positive correlation with high—quality audit; the number of the board meetings and two grade—one situation have a significant negative correlation with high—quality audit;the size of the board and the proportion of independent directors have a significant positive correlation with high—quality audit;at the same time,we found that the audit committee and the supervisors have not played the effective audit of governance as people expected.And there is positive correlation between management of the stock situation and demand for the audit,but it is not significant.There is paradox.On the basis of the above—mentioned theoretical and empirical conclusions,considered the article situation of china's listed companies,we made some policy recommendations about corporate governance,in order to improve the quality of listed companies on the audit services of their own needs and the quality of the audit.