Study, Based On The Audit Committee System Of Corporate Governance Of Listed Companies

As an important part of corporate governance in UK and America, audit committee could prevent financial fraud in a way and help the board to remove its legal liabilities, which has been supported by empirical studies. In China's emerging security market, the financial swindle have been perplexing investors and supervisors. As a result, China Securities Regulatory Commission (CSRC) expects the introduction of audit committee help to perfect corporate governance and promote standardized operation of listed companies. In order to provide the establishment and perfection of audit committee in china with practical suggestion, this paper analyzes the necessity, effectiveness and how to arrange the audit committee mechanism in China.This article which uses both empirical and normative research methods is divided into four parts. The first part is the section of introduction, which explores the goal, status quo, motive, significance and framework of the article, critical problems to be resolved and methodology.The second part is mainly focused on the introduction of history and reality of audit committee in U.S.A., the theoretical bases of audit committee and the relationship between audit committee and corporate governance.The third part goes through the evolution of audit committee in our country and analyses the economic environment of our country at the first. Subsequently two models are constructed to analyze the following correlations: one is the correlation between the audit committee and audit opinion, the other is the correlation between the audit committee and earnings management. The regression results show that the supervisory role of China's audit committee is not effective.The fourth part provides suggests for improving audit committee of our country, including enhancing the independence of audit committee, perfecting the responsibilities of audit committee, enhancing audit committee's financial ability and strengthening supervising and praising audit committee.