A Study On The Correlation Between Audit Committee Characteristics And Audit Pricing

Deviate from the original intention of the establishment of the audit committee and the reality of development. The original intention of the establishment was to represent the company shareholders accounting affairs of the company inside and outside the company to play a positive role of supervision, but the reality is that corporate financial scandals and audit scandal louder. Especially after the Enron and WorldCom events, to America represented continuously by means of legislation, strengthen the supervision and management efforts, improve the system of the audit committee, the bill is a typical Sarbanes Oxley Act (Sarbanes-Oxley). Through a series of act, intended to improve the independence and expertise of audit committee, in order to achieve the original intention of the establishment of the system better. At present, not many researches about the characteristics of audit committee and audit pricing in China, especially in accordance with few people study if there were differences between geographical division of East West studies. At present the research on the correlation between the domestic and foreign related characteristics of audit committee and audit pricing results are not yet clear, the main reason may lie in the different study method, different period and take.The main idea of this paper is based on the experience data of 2011-2013 years, the Shanghai A shares, audit pricing based on the angle of view, from the basic—independence, professionalism, diligence and the size of the four aspects of the audit committee characteristics, analysis of the development trend of the audit committee of the four basic characteristics in the status and trends in China’s whether there is a difference between, and regional with the eastern region, central region and the four region classification. The research method is empirical and normative research methods to combine.The conclusion of this study shows that, the current problems are mainly the following three points:first, the audit committee of the small scale, independent feature is not obvious, the professional needs improving, diligent degree need to enhance the enthusiasm of related information; second, the audit committee report on the work of the contents of the disclosure is not perfect, the format is not standardized; third, the audit the committee system in the development between different regions in China is not balanced. And put forward the corresponding policy recommendations:one, increase the size of the audit committee, independent, professional, and diligence; two, improve the audit committee report on the work of the content and format of information disclosure. Three, to promote the improvement and development of China’s central and western regions of the audit committee system.