Research On The Correlation Between The Characteristics Of The Internal Audit Committee Of Listed Companies And Audit Fees

In recent years,Kangmei Pharmaceutical,Luckin Coffee and CITIC Guoan,which have established audit committees,have been exposed to financial fraud one after another.As an important measure of corporate governance,the audit committee has to reflect on whether the audit committee is performing its duties.The audit fee is the return received by the certified public accountant for the audit work,which can reflect the audit work situation as a whole.In order to explore how to make the audit committee really exert its supervisory effect,This thesis selects the independence,activity and scale characteristics of the internal audit committee of listed companies,and analyzes how it will lead to the changing trend of audit fees.It supplements the existing literature,deeply considers the nature of property rights and the differences in the level of regional economic development,and examines whether the internal and external environmental factors play a moderating role in the relationship between the two,which is helpful for in-depth understanding of the economic consequences of the audit committee system of listed companies in my country.It has a certain reference value,and it also expands and enriches the literature in the field of audit fees to a certain extent.The research context of this thesis is that,firstly,it summarizes the principal-agent theory,the price theory of products or services,the theory of industrial organization and the theory of corporate governance.Based on this,the mechanism analysis of the research problem is carried out,and the research hypothesis is proposed.Secondly,taking the data of A-share listed companies in Shanghai and Shenzhen from 2014 to 2020 as a sample,determine the research variables and their measures,and build a model.Then,an empirical analysis is conducted to verify the correlation of audit committee independence,activity and size with audit fees using multiple regression analysis.It also considers the difference in the relationship between the two under different property rights and different economic development conditions.In addition,it further discusses how the effectiveness of the internal control system in the internal environment,the marketization process and the legal environment in the external environment will have a moderating effect on the relationship between the two.And by changing the sample size,substituting dependent variables and substituting independent variables for robustness testing.Finally,summarize the research conclusions and make policy recommendations accordingly.The research found that:(1)The independence,activity and scale of the internal audit committee of listed companies significantly promote audit fees.(2)First,compared with non-state-owned enterprises,the independence and activity of audit committees of state-owned enterprises can promote the increase of audit fees,and the scale of audit committees has a more obvious role in promoting audit fees of non-state-owned enterprises;The independence and activity of regional audit committees have a stronger role in promoting audit fees.The size of the audit committee has a more obvious role in promoting audit fees in regions with low levels of economic development.(3)The effectiveness of corporate internal control system plays a significant positive moderating role in the relationship between the independence of the audit committee and audit fees.The regional marketization process and the legal environment have played a significant positive moderating role in the relationship between the independence,activity and audit fees of the audit committee.