Empirical Study On Effectiveness Of Audit Committee Of Listed Company In China

Audit committee is established as a special institutions belonging to board of directors.It is a stand-alone financial strength,and by performance monitoring, control, communication and reporting responsibilities, to improve the quality of financial reporting. It is a shorter development time in China.Since 2000 China has introduced the concept of the audit committee, many companies have established an audit committee,but if it can play a role in our current capital environment is a worthy subject of study.It is the core of this paper.This research uses the methods combining normative research and empirical research, learns from other scholars on audit committee,summarizes and innovates,describes the audit committee theory,summarizes the characteristics of the effectiveness of the audit committee, and through descriptive statistics analysis and logistic regression analysis method on the empirical test of the audit committee governance effective and efficient characteristics.Because it is a substantial increase establishment of the audit committee from 2006 to 2007,from about half the proportion to 95% or more,the first empirical research uses the 2006 A-share listed company data,verifies whether or not the establishment of the audit committee influenced the standard audit views.The second empirical uses 2009 A-share listed company's audit committee effective data to verify the various relationships between audit committee characteristics and effectiveness of audit committee.According to the test results can be seen that the establishment of the audit committee plays a positive role currently in the corporate governance of listed companies in China,helping to improve the quality of financial reporting,and each features-independence,professionalism and due diligence and the audit committee validity are tested positive correlation.Finally,according to the theoretical analysis and empirical results,a few recommendations are put forward.