The Audit Committee System: Architecture And Perfect

China Securities Regulatory Commission and State Economic& Trade Commission issued corporate governance of the listed company in 2002 which required the listed company should set up audit,strategy,nomination and remuneration committees as part of its governance. As a watchdog of company, audit committee is an important part of company board which deals with supervising company financing and internal control, playing a significant role in releasing finance information , especially avoiding and detecting the fraud in financial report. Audit committee which is a way for reducing fake financial information can be used widely when fake financial information is common in China's securities business now. In addition, audit committee can produce positive effect in improving corporate governance and internal control. Because audit committee was invented by foreign country, practitioner lacked understanding it and scholar's study which stayed introducing and discussing its some parts wasn't comprehensive. The article studies audit committee and its application in our country widely and deeply, which referring to foreign article and considering our country's status, provides some suggest for using it effectively in our country.This article is divided into two parts, introduction and text. Introduction illuminates motive, significance and framework of the article. Text includes four parts. Part 1 audit committee's history and theory introduces history and reality of audit committee of U.S.A and U. K. and other country, analyses the cause of producing audit committee theoretically. Part 2 establishes basic framework, including audit committee's membership and appointment, responsibilities, meetings and report of the audit committee and audit committee's evaluation and its member's legal responsibilities. Part 3 studies our country audit committee's reality and its effect, tests its effect by positive way and draws relevant conclusions. Part 4 provides four...