Research On Audit Committee In The Perspective Of Corporate Governance

The audit committee has become a vital part of corporate governance for a long time in the west. From the raising and developing process we can see, it originated from the financial cheating case, which to make up the defect of external auditing functions, and has increased with the development of corporate governance. As a corporate governance structure and a special committee which belongs to the direct board, the audit committee is responsible for direct board, supervises the managers and protects the right of shareholders. From the situation in the west, the building and developing the audit committee functions is good for improving the company management.In recent years, listed companies have exposed many problems in managing construction in China. Most serious are the departure between the power of owner and the absent of the owner, and the internal controlling. What is more, the finance cheating case has seriously disrupted the effective operation of the security market, detrimental the interests of investors in general. How to improve our supervision system invokes people's attention. In the situation, the audit committee, a internal control system in the west, has stepped into people's eyes and become a hot topic. In the beginning of 2002, "The Regulation Rule of China Listed company "had been announced, which pointed out that the board of the listed company ought to setup strategy, audit, nomination, salary and examine committee according to the decision of shareholder meeting. All members of the special committee are consisted of directors, the majority directors of audit, nomination, salary and examine committees should be independent directors, one of the independent directors in audit committee should be accounting professor.This thesis first introduces the basic system of corporate governance and audit committee, then leads to the development of audit committee in our country by anglicizing its theoretical basis. As the corporate governance of listed companies in China exists congenital governance defects, independent director system is flawed, the audit committee is similar to supervise board and lacks of legal support for the environment, and so on, the audit committee in the practical application does not really give full play to its effectiveness and achieve its expected goals. Under this background, the audit committee is researched on, as well as the establishment and improvement, in the aim of finding out a suitable system, in the future the promoted and improved audit committee can be used to practice and guide practice, strengthen the supervision of listed companies, what is more, reduce financial fraud.