A Study On The Performance Of External Audit Institutions In China 's Listed Companies' Audit Committee

Audit committee system is a significant part of corporate governance mechanisms, playing an important role in supervising and evaluating the external auditors and guiding the internal audits. The CSRC and SETC issued jointly Public Company Governance Principle in January 2002, officially introducing the audit committee system. Its original intention is to establish an independent financial power within the board of directors of the listing corporation to enhance the independence of external auditors, improving audit quality, Improving the authenticity and reliability of the company’s financial report. From the resumption valid of audit committee to the external auditors’ standpoint, this article creates multiple indexes to intensive study the issue, basing on the research literature at home and abroad.First, referring to the Shanghai Stock Exchange issued The Shanghai Stock Exchange listing Corporation board of audit committee’s operation guidelines in December 2013, using The official website of the Shanghai Stock Exchange disclosed the Shanghai Stock’s audit committee performance report 2014(the deadline is May 31, 2015) as its data source, collecting and recording the information about the resumption valid of audit committee to the external auditors.Second, basing on the Article 14’s specific provision of The Shanghai Stock Exchange listing Corporation board of audit committee’s operation guidelines, this part set up ten effective indexes. According to the audit committee members whether signed or not to mark, and then revealed the status of the resumption valid of audit committee to the external auditors, reflecting the resumption of audit committee to the external auditors was invalid.Third, think about the hypothesis of the existence of two types of the audit committee performance report(One situation is that the resumption of audit committee to the external auditors was invalid and disclosed truly; the other situation is that the resumption of audit committee to the external auditors was valid but not disclosed), this part analyzed the reason why the resumption of audit committee to the external auditors was invalid from four aspects, which were working time, work efficiency, independence and Non-standard information disclosure.At last, taking the status of the resumption valid of audit committee to the external auditors and the reason why the resumption of audit committee to the external auditors was invalid as research foundation, this part proposed the measures for improving them form three aspects, including strengthening the function of the resumption of audit committee to the external auditors, improving the audit committee’s governance mechanisms, reinforcing the construction of the audit committee’s information disclosure system.