The Research On The Establishment And Perfection Of Audit Committee In Our Listed-companies

After Enron scandal, the United States promulgated 'Sarbanes-Oxley Act', which brought on revolutionary changes of corporate governance, modern accounting and modern auditing. The act emphasizes the importance of internal control, especially the effect of audit committee in corporate governance and information exposure. The act influenced the world economy so much that it has been called 'the new principle of listed company 'in the United States and even in the world.The listed company plays a crucial rule in our national economy. But in recent years, a series of financial scandals have disordered the securities business badly and impaired the most investors' interests. To solve the problems of listed companies needs not only external supervision but also internal control. Under this circumstance, we began to introduce audit committee system of the west.Audit committee is an important institutional mechanism in western corporate governance. As an important part of corporate governance in UK and America, audit committee performs a significant function for improving corporate governance. After all, there are lots of difference between China and the west. Because of many factors such as inborn limitations of corporate governance and faulty independent director system, audit committee didn't operate really and truly. In this situation, the paper makes a special study on the establishment and perfection of audit committee in china, with anticipation to provide some useful and practical suggestions for using it effectively in our listed companies.This paper firstly describes the theory foundation of audit committee: agency theory and game theory. Based on the introduction of the audit committee's developing history, the paper analyzes the relationships among director, internal audit, independent audit and audit committee and points out that the essence of audit committee is to supervise and keep independent in the process of supervision.This paper secondly explores the necessity and realistic significance of establishing Audit Committee in China, studies the actuality of our audit committee and its effect and analyzes the causes of invalidation widely and deeply. This paper points out that due to the inborn limitations of corporate governance, the faulty independent director system, the lack of credit system, the noneffective law and so on, the audit committee in our listed companies haven't operated an effective function.At last, this paper puts forward the measures for the perfection of our audit committee system from the macro and micro aspects. The measures include strengthening credit education, amending relevant laws and regulations, strengthening supervision and evaluation on audit committee, strengthening enterprise culture construction and so on.