By now, all the US firms have formed audit, compensation, and nomination committees, in compliance with the Sarbanes-Oxley Act and stock exchange regulations. The rise of audit committees is in international phenomenon, despite mixed findings on their effectiveness in practice and a lack of clarity about their rose. However, an audit committee has been generally regarded as a crucial part of the accountability model. In Australia, the Australian Stock Exchange (ASX) has made mandatory for the top 500 ASX-listed companies in 1 January 2003 to establish an audit committee. Although it is not mandatory for these companies to have a remuneration or nomination committee, the proportion of Australian companies with such committees is considerably higher that China. Because it is not mandatory to establish an audit, or any, committee in China the proportion of large listen Chinese companies with committees remained relatively constant between 2004 and 2006. On average, 47.10 percent of them had an audit committee, 50.65 percent a remuneration committee; and 37.96 percent a nomination committee.