Corporate Governance Structure Of Electric Power Industry And The Research Of The Relativity Of Audit Quality

At present, the audit services provided by certified public accountants are a kindof strong credibility of goods. Audit is the last defense line of forensic accountinginformation quality. Audit quality directly determines whether investors’ interests areprotected. High audit quality can inhibit the surplus of the manipulation of theauditor’s management. Direct relationship with the company credibility and reliabilityof the financial report, which investors increased confidence in capital markets.However, a series of financial fraud cases happened at home and abroad are related toeffective corporate governance and audit quality is low, the serious distortion ofaccounting information of enterprises, serious internal control out of control,economic phenomenon appear constantly suffer huge losses, the root reason for theabove phenomenon is the company’s governance structure caused by the problem. Inthis case, the audit quality is likely to be the influence of the governance structure oflisted companies. At present, the domestic and foreign scholars on the listed companygovernance structure and strategic performance research is more, but for the electricpower enterprise, belongs to the state-owned companies in the relationship to thenational economy and people’s livelihood, natural monopoly the study of the theory ofthe governance structure of listed companies. Therefore, this article attempts to thepower industry relationship between corporate governance and audit qualityspecification and empirical research, and according to the results put forward theconcrete countermeasures of consummating the corporate governance structure of theelectric power industry hopes to raise the level of corporate governance and improveaudit quality to make some contribution.This article first defined the concept of corporate governance structure and auditquality, including the internal corporate governance structure and external governancemechanism, will be a significant impact on audit quality, and in this paper, we chosethe ownership structure, board characteristics, characteristics of the board ofsupervisors, management, audit committee, internal governance mechanism forcontent, because the internal governance mechanisms than external governancemechanism of the role of audit quality more apparent. Audit quality representative indicators mainly include: firm size, firm reputation, the types of audit opinions, auditfees, as the number of CPA.This article selects52industry listed company three years of2009-2011sampledata, through factor analysis, correlation analysis, regression analysis, empiricalanalysis methods, such as corporate governance structure and the correlation of auditquality on the empirical research. This article has certain limitation. Because the auditquality has to be observed, so need to measure from various angles. And, when carrieson the empirical research, decision-making mechanism, incentive mechanism of themanagement team of the company without the consideration on the influence of auditquality has led to the limitations of this study.