A Study On The Financial Governance Efficiency Of Audit Committee Of China

Audit committee is an important institutional mechanism in corporate governance. Its original purpose is to have an independent financial governance power to ensure CPA's independence and integrity and reliability of financial statements provided by corporations. Audit committee has arrived in China since 2002 when the China's Corporate Governance Principle was issued corporately by Ministry of Finance and State Economic and Trade Commission,which has been deemed to be a beneficial trial to improve the corporate government.Audit committee system of our country is in the initial development stage, whether our Audit committee office system could play an efficiency role in the improvement of Chinese listed companies must get the big question mark. The studies on the localization of Audit committee system is also becomes the people issue of concern.This article through to the domestic and foreign Audit committee institution development course review, obtains the Audit committee institution the enlightenment. Then we inspected Audit committee's essence and the official duty from the economic and the legal science dual angle of view. At the same time, penetrates to audits committee members in, inspected the audit committee to constitute the member and the scale, committee member, the qualifications of member with to have the procedure as well as the movement mechanism. We also take China the company as the sample, analyzed the establishment Audit committee to find out the company's profession distribution situation. According to the overseas empirical experience, we comprehensively analyzed the government efficiency question of Audit committee, namely the Audit committee whether effective suppression earnings management degree, thus improved financial report quality of our country company. The article finally proposed certain measures which will improve the governance structure and make Audit committee institution better.The reason for our country present stage Audit committee problem is various, for instance the company original governance structure existence the flaw; our country independent trustee system is congenitally deficient; our country lacks the related rules and regulations about Audit committee and so on. In view of these questions, we may perform from the below angle to solve: First, take the rule as the guidance, perfect related Audit committee; Second, guarantees the Audit committee the independence and specialized ability; Third, constructs and consummates the independent trustee's drive and the restraint mechanism; Fourth, strengthens the confrontment to count commission member's surveillance appraisal and the following education; Fifth, strengthens the Audit committee the information disclosure mechanism.