| This dissertation studies the applicable auditing theory and practices.The center of auditing theory and practical studies lies in the CPA's financial report audit. However, the audit environment plays a close and direct role in whether the CPA may fully perform the audit process. Independence, objectiveness and justice are the basic rules of CPAs professional. If such criteria cannot be ensured, the trust and demand from the general public for CPAs would be different from the actual facts. In 1987, the U.S. NCFFR began to investigate in the increasing number of fraudulent financial reports. The investigation indicated that fraudulent financial reports have much to do with the corporate internal control, intention of the management and the independence of the CPAs. The first two reasons are associated with the audit environment and confine the independence of CPAs. The author believes that improving the audit environment is the priority to enhance CPA's independence. Although audit environment involves many factors such as the macro economic environment and system, the level of economic development, government and professional institution's influences and the respect from the report user and etc., the key factor lies in the financial report provider. The company itself should offer proper supervising and governance in the entire financial reporting process. Base on that fact, this paper provides full discussion of a selection of the successful U.S. and British audit committees, and their roles and functions in the financial governance. Since financial governance and corporate governance are closely related, the first chapter introduces the corporate governance and the importance and responsibilities of financial governance, then lead to the effect of audit committees. The second chapter discusses the forming and development of the audit committees in other nations, which concentrates mainly on the U.S., Britain and Canada. The third and fourth chapters analyze the current audit committee regulation on both theoretical and actual practices. The last chapter compares the corporate and the financial governance issues of the publicly traded corporations between Mainland China and Taiwan, and tries to search for possible suggestions to improve the financial governance functions.Chapter 1. Corporate Governance, Financial governance and the Audit CommitteesThis chapter begins with the various definitions of corporate governance. In order to reach all the tactical targets, the balance of corporate organization structure, operation andcontrol system must be reached. A transparent corporate governance system is necessary for proper observation. Otherwise, the guarantee of proper operation must be relied on external and expensive independent supervising system. Second, this chapter explains the theories behind internal and external factors that affect the corporate governance. A more detailed discussion on the current corporate governance mode such as the Japanese-German mode and the Anglo-America mode and their individual traits, and advancing into the possible combination and development of these traits from the globalize pointFrom the financial and accounting aspects, the proper monitoring in the processing and disclosure stages of financial information is an essential step, which is the transparency requirement mentioned above. The next part describes author's definitions of financial governance and discusses from three aspects:1.Financial accounting information and the securities market: Financial accounting information is the center of financial information. In the securities market, information affects the prices and decides capital allocation. Among all types of information, financial information plays the most important and relative role. If the financial information itself is fair and neutral, Platonic results are generated. However, it is not adequate to rely on CPAs, institutional investors and other external supervising tools to guarantee the fair and neutral information is provide. In ord...
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