The Study On The Audit Board System Of Listed Company In China

The Audit Committee has become a part of company management for a long time in the west. From the situation in the west, the building and development of the Audit Committee functions for improving the management of company. According to recourse, 959 companies have set up the audit committee among 1000 companies listed in Fortune.In recent years, listed companies have exposed many problems in managing construction in China. Most serious is the inner control of the operating level due to the departure between the power of owner and operation and the absent of the owner in our state controlling companies, which weakens the power of controlling of the board and damages many shareholders benefits unavoidably. What's more, the finance cheating is keeping continuing. How to improve our supervision system invokes people's attention. In this situation, the Audit Committee, a inter control system in the west, steps into people's eyes and becomes a hot topic. In the beginning of 2002, "The Regulation Rule of China Listed companies" had been announced, which pointed that the board of the listed company ought to setup strategy, audit, nomination , salary and examine committee according to the decision of the shareholder meeting. Many experts gave suggestion about building the audit system in nation meeting of 2003. Li guoguang pointed out: to function the outer board member, we should build the audit committee. And Wang guangyuan also said: building the Audit Committee system can restrain the financial cheating. In china, the building and developing of the audit committee system is such a field that is not touched and studied widely. So the author want to make the listed companies subject, study on the Audit Board system and hope make some constructive suggestion on our listed company's managing.The author introduces the system of Audit Committee in foreign countries from its definition, origin, the historical development, function and situation of the corporate governance. And then introduces the theoretical foundation combining the accountability theory and the disclosure of information. Give some suggestions on how to design our audit board system comparing the experiences of the west after analyzing the background.