The Establishment And Operation Of Audit Committee In Listed Companies

Since the late 1990s , the distortion of accounting information of the listed company frequently happened in Chinese securities market. This has seriously damaged the interests of medium-sized and small shareholders, resulted in the investors' untrusting of the accounting information and CPA, fueled the speculation atmosphere and seriously embarrassed the development of China's securities market. From the practice of corporate governance in the United States and the UK,establishing audit committee is an important measure to insure the independence of CPA and improve the quality of accounting information.In the 21st century,the US stock market broke out of many accounting scandals such as Enron and WorldCom, shocked the world. Therefore, The United States enacted and implemented the Sarbanes Oxley Act, emphasizing the audit committee's position and role in corporate governance.January 2002, China Securities Regulatory Commission and the former State Economic and Trade Commission jointly issued the "Corporate Governance Guidelines",stating that the board of directors of listed companies can establish strategic,audit,nomination special committees.Being interested in audit committee, I chose it as master's thesis.Through analysis and statistical methods,I study the topic which is of great significance in theory and practice to put forward some constructive suggestions.This paper is divided into five chapters . Based on the summary of study at home and abroad, chapter 2 analyses the committee's content, theoretical basis of origin ,mode of establishment and its functions.Chapter 3 analyses the content of corporate governance and corporate management status in China, concluding that it is necessary to set up audit committee .Chapter 4 analyses the establishment and operation of audit committee in China.The last chapter put forward some constructive suggestions to improve the audit committee.In view of the limited access to information and knowledge, this paper only undertakes normative research ,not having an empirical study to the operation practice of audit committee in China.This is the shortage of this paper ,and also the direction of further research in the future.