Research On Cost And Government Benefit Of Audit Committee System Of Listed Company

At present, all countries in the world have paid great attention to the governance and supervision of listed companies. The quality of financial information and financial information disclosure mechanisms of listed companies are classified as the main elements of various countries' government supervision and the corporate governance. Audit committee system as an important institutional arrangements in the corporate governance structure, its establishment objective is to seek an independent financial government strength in the board of directors, in order to improve corporate governance structure, strengthen internal control, ensure the independence of external auditors, strengthen the authenticity and reliability of the corporate financial report information, which is helpful in improving the economic benefits of the company.From our country's current situation, there are many problems in the corporate governance of listed companies, which make the establishment of the audit committee system in listed companies in our country has become imperative. In early 2002, the China Securities Regulatory Commission and the former State Economic and Trade Commission (now the Ministry of Commerce) jointly issued the. The 52 criteria states:"The board of directors of listed company may establish a corporate strategy committee, an audit committee, a nomination committee, a remuneration and an appraisal committee and other special committees in accordance with the resolutions of the shareholders' meetings."This means that our country's government proposed the requirements to listed companies to set up the audit committee. At present, although the establishment of the audit committee system in listed companies still adopt the voluntary way, there is an increasing number of listed companies which have set up the audit committee. However, the audit committee system has strengthened the internal control ,at the same time, the cost of its establishment and operation is bound to give a certain burden to listed companies. Therefore, along with the establishment and development of the audit committee system in our country, the cost and government benefit have become to receive wide attention.This paper begins with the localization and responsibility of the audit committee system, has constructed the theoretical framework of the audit committee system, which is consisted of corporate governance theory, the principal-agent theory and the cost-benefit theory. On this basis, for comprehensively analyze the cost and government benefit of the audit committee system of listed companies in our country, the paper adopts descriptive statistics' method, begins from the characteristics of audit committee system, research the cost and government benefit arising from the establishment of the audit committee system for listed company, which is that the audit committee system can really help to promote the improvement of the external audit opinion, improve the quality of information disclosure of listed companies as well as the economic efficiency. Finally, this paper begins from a point of view of applying theory to reality, research and discuss the problems in the process of setting up and operating of the audit committee system for listed companies in our country at this stage, and give recommendations and countermeasures to how to realize low-cost and high government benefit of the audit committee system of listed companies.