Study Of The Independence Of The Audit Committee Of Listed Companies In 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 realiability of financial statements provided by corporations. This mechanism includes professional qualifications, professional skills and ethic of conduct, employment, rotation, compensation, meetings and performance evaluation and supervise the business of company and finance. Audit committee has important position in governing structure in the inside of company. It response for financial report process , the inside controls the inspection duty governing with the company on behalf of the Board of Directors. Audit committee can also increase the independence of the auditors and avoid the auditors and management's collusion. Corporate governance as an important mechanism for effective audit committee can help identify, evaluate and control risks. Therefore the independence of the audit committee of security is especially important. In practice, however, Audit committee machnism does not seem to be complete the mission. Many examples show that the machnism lacks independence. We only have further impact on the independence of the machnism of factors which can identify the Audit committee machnism in the future development.Cause at this stage of our independence of the Audit committee mechanism are many reasons for. For example Chinese companies such as imperfect management structure, audit committee machnism and the board of supervisors system of conflict, independent director system problems, China's major shareholders of listed companies and so on. This paper is from the Audit committee machnism in the history of the evolution of start. In theory, the audit committee to explore the corporate governance of the importance of the independence and status. By then China's Shanghai stock market in 2005 listed companies test the independence of the Audit committee machnism. As a whole clear of the Audit committee machnism in Corporate Governance in the independence of the results, I will think audit committee of independent directors accounting for all the members of the Audit Committee of the Audit committee machnism as a measure of the proportion of the independence of a standard. On this basis, through Data collected and the set model, With empirical data on China's listed companies on the independence of the Audit committee machnism to conduct an empirical study. As the basis for listed companies to enhance the independence of the Audit committee to make some personal comments and suggestions.