Research On Audit Committee Of Listed Companies

In today's rapid economic development, the capital market is facing major interest conflict and business operation issues and problems are increasingly apparent. Business being closely related to the creation of happiness and a tranquility society that are directly connected with thousands of families. In order to provide better benefits to shareholders, especially to the small shareholders the audit committee has been introduced. Under this implementation by The Board of Audit system, promotion by the legislative bodies committee system, it is becoming more important in solving and managing problems of the businesses for our listed companies.This article is based on the theory laid by company governance and audit committee, operating from first analysing the theory behind company governance, its purpose, role, structure and defining company governance is basically about creating a balance of interests. From the time the audit committee was formed till today, it is closely related to the Independent Director System, the supervisory system and the internal audit system and at the same time it is being reinforced and enhanced by the "Sarbanes -Oxley Act". This article reviews how this system and the actual implementation is monitored and analysed the current situation and issue of China Audit committee. From the lessons and insights learned from the Enron and Parmalat incidents, including our domestic case of ITG Company helps to improve the efficiency of the system. Also through analysing other foreign audit committee system; USA, Europe, Japan, helps to improve system. Lastly, the audit committee also offers ideas how to optimize and improvise; stating there is still room to increase its independency, improving the Independence Director System, changing the environment and the supervision process in order to maximize its efficiency.This article through the studies points out the audit committee is playing a extremely important role in company governance and a proven guarantee for the authenticity of accounting information. The audit committee also needs to handle and monitor the supervisory system and the internal audit system. Listed companies in our country are not actively supporting the choice of the audit committee, so regarding the legal issues, possibilities and importance of non business organizational operation needs to be discussed further.