The Influence Research Of The Audit Committee Characteristics On The Internal Control Defects

Due to financial fraud cases occurred frequently in recent years, as the United States of enron, the abandonment of events such as China, gradually exposed the company internal control problem of the seriousness, the problem of the company bring serious negative impact, cause huge economic losses. in the increasingly harsh economic environment, to strengthen the construction of internal control become the focus of the companies conquer direction, there are many factors that can influence the company internal control, such as the characters of the board of directors and board of supervisors,audit committee characteristics, external supervision and so on, to reduce the occurrence of internal control defects, perfect the internal control system, improve corporate governance factors become critical.This paper mainly studies the audit committee characteristics on the company’s internal control defects, so finishing characteristics of the audit committee, audit committee behavior and internal control defects related literature, to learn such train of thought for studying the problem of scholars at home and abroad, according to the theory of principal-agent theory, corporate governance and internal control theory as the basis,analyze the major defects company region, plate type and industry distribution characteristics, based on the Shanghai stock exchange main board 2010 a-shares, the ShenZhen stock exchange main board a-shares, A significant defects in small and medium-sized panels, the gem of 197 companies as samples, observed in 2010-2014 the audit committee, independent professional, scale and the change of internal control defects and the relationship between the two, on the relationship between the audit committee characteristics and internal control defects assumptions, establish a multivariate regression model, the empirical analysis results show that audit committee professional ratio is higher,the stronger the independence, the larger, the smaller the possibility of defects, the greater the inhibition of the internal control defects, is conducive to the improvement of the company internal control system.This article is to summarize the empirical results,presented research according to the deficiency of the internal control and put forward thesuggestions on the construction of the audit committee.The innovation of this paper include, firstly, this article to expose major defects as sample, the audit committee characteristics influence of internal control defects; Secondly,the study to collect data from 2010-2014, based on five years of continuous data for the study of the sample audit committee characteristics on the influence of the internal control defects.