Problems of Implementing Audit Committee and Supervisory Board Simultaneously in China

• Autores: Pao Chen Lee
• Localización: Journal of Accounting Auditing and Finance, ISSN-e 2160-4061, ISSN 0148-558X, Vol. 30, Nº 4, 2015, págs. 509-528
• Idioma: inglés
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• Resumen

  • Imposing the mechanism of a single audit committee (AC) on the dual supervisory mechanism of a Board of Directors alongside a supervisory board (SB) has raised questions regarding the problems in implementing effective monitoring functions. A comparison of these different governance mechanisms is documented in this article by interviewing two governors of all listed companies in the Shanghai Stock Exchange (SSE) and of 79 investment corporations in Hangzhou. Both comparisons of regulation and the issues raised in the interview point out the problems in implementing effective supervision through these distinct governance mechanisms. The evidence presented provides useful guidelines of how key characteristics of effectiveness and co-ordination can be improved to make supervisory functions in China more effective.