The Discussion On The Audit Committee System Of Listed Companies In China

The audit committee has become an important part of corporate governance for a long time in the west. From the situation in the west, the building and development of the audit committee can improve the management of company. According to a survey, 959 companies have set up the audit committee among 1000 companies listed in Fortune.There are many problems appeared in the activities of corporate governance after twenty years' reforming and opening in china. Especially, in recent years, cases of financial cheating increased rapidly. Therefore, it is important and critical to design a set of internal control system to improve this situation. Many scholars and researchers believe that audit committee, an internal control system exists in western companies extensively, is deserve further discussing and understanding. Based on these backgrounds, this thesis is supposed to discuss issues relevant to establishing the system of the audit committee in china, with anticipation to offer some useful suggestions and advices to the management of listed companies in our country.At present, the questions existing in the audit committee system of listed companies in china are shown mainly: First, the question of the member constitutes, for example, the independent director proportion is excessively low, the ability of the members is not sufficient, the question of the engagement and so on. Second, the function localization question, it is mainly fuzzy now. Third, reward mechanism question. Fourth, duty and responsibility question. Fifth, report mechanism question.The western developed countries have some advanced experiences, through analyzing these advanced experiences, combining actual situation of our country, we can obtain certain inspiration. As early as in 1940, the "Mekesson & Robbins" corruption caused the question of the social public to the financial information quality of corporate management authority, accountant's independence and the specialized ability. Therefore, American Stock Exchange Council( the SEC predecessor) started to suggest the establishment of audit committee. In the new century, the Enron event caused the people to examine the audit committee carefully. American President Bush signed 《Sarbanes - Oxley Act》 . In this act and the SEC new laws and regulations, the function of the audit committee which under the board of directors is extremely prominent, it will become an important link to guarantee audit independent. In addition, the audit committee will also undertake the key role in the financial report process. In...