In financial oversight system of the listed state-controlled companies， the main financial oversight is most important one because it can deliver the useful historic and future information to inside and outside decision makers correctly， timely， and continuously， and this information usually is the basis of financial oversight. The outspread financial oversight should be the first financial oversight in the listed state-controlled companies， the main financial oversight should be the second financial oversight of the outspread financial oversight， and the marginal financial oversight should be another financial oversight to the main financial oversight and the outspread financial oversight.
This article is divided into seven chapters， and the main contents are listed as follows：
Chapter 1： This chapter introduced the objectives， purposes， background， and scope of writing， reviewed the relative literatures， and pointed out the basic framework， innovations， as well as limits.
Chapter 2： This chapter explained the relative theories， including theories basis of financial oversight， the definition of financial oversight， the difference between financial oversight and accounting oversight， and the elements included in financial oversight systems.
Chapter 3： This chapter presented the setting， characteristics， functions of aboard financial oversight systems （including Germany， Japan， and USA）， and analyzed the good and bad aspects of financial oversight in each country.
Chapter 4： This chapter discussed the implementers and functions of the main financial oversight. The implementers of the main financial oversight include supervisory board， audit committee， and financial supervisors. The supervisory board guides other implementers in the main financial oversight， and it should monitor audit committee and financial supervisors. Financial supervisors’ function is to help board of directors to implement oversight on the managers， and audit committee’s function is to balance the rights of executive directors. Financial supervisors and audit committees should report to the supervisory board， and communicate with supervisory board periodically. Supervisory board could get timely information about financial position and operation from the report of financial supervisor and audit committee.
Chapter 5： This chapter discussed the implementers and functions of the outspread financial oversight. The implementers of outspread financial oversight include internal audit and CFO. The internal audit is the main implementer， and it should monitor the CFO. Internal audit evaluates the financial information and risk management of companies and advances measure to improve the management of operation. CFO monitors the management activities and joins the significant decision made by the management.
Chapter 6： This chapter discussed the implementers and functions of the marginal financial oversight. The implementers of the marginal financial oversight include public media， public accountant firms， and tax authorities. The public media can monitor the financial information， corporation governance， and so on. The public accountant firms must keep independence to monitor the fairness of financial statements of companies. Tax authorities focus on tax return information of companies， and symbolize authority of government. The public media and public accountant firms are main implementers in the marginal financial oversight.
Chapter 7： This chapter analyzed the difference and cooperation among three financial oversights. The main financial oversight has a guidance function. The outspread financial oversight is first oversight， the main financial oversight is the second oversight， and it monitors the financial oversight results of the outspread financial oversight. The marginal oversight function is another oversight to the main financial oversight and the outspread financial oversight.
The innovations of this article：
（1） The author advanced the financial oversight system should include the main financial oversight， the outspread financial oversight， and the marginal financial oversight based on “Big Finance” and the view of stakeholders. Three levels of financial oversight distribute the rights of financial oversight effectively and reasonably. This article provides the theory basis for improvement of governance of state-controlled listed companies.
（2） Through reviewing the literatures， the author redefined the financial oversight functions of financial oversight implementers， such as audit committee， financial supervisor， internal audit， and CFO. The author also identified the factors influencing their supervisory functions. This article has a positive effect to distribute financial oversight rights correctly and reasonably and prevent the repeat setting and wasting resource.
（3） The author advanced the concept of “external alienation of financial supervisor”， and pointed out that only the effective supervisory board’s financial oversight， as well as public accountant company’s financial oversight or government Audit Office’s financial oversight could prevent the production of “external alienation of financial supervisor”.
（4） The author analyzed and compared the current situation of financial oversight function of supervisory board and audit committee as well as independent director based on the data from 2002 to 2006 both in state-controlled companies and in private companies. The author used Kothari （2005） model to calculate earnings management and the cross item of the frequency of supervisory board’s meeting and the ratio of independent directors to all directors to explain the synergy benefit of the frequency of supervisory board’s meeting and the ratio of independent directors to all directors.
（5） The author identified the correlation and difference among financial supervisor， CFO， and accounting controller， and defined the financial oversight function of each one. Therefore， this article provides theory basis for the practice.
The disadvantages of this article：
Although the author has already done a tentative and innovative research about financial oversight system in listed state-controlled companies， there are still many fields need to be done more deep research in the future because the time is limited and data is difficult to be obtained.
Key Words： financial oversight； audit committee； supervisory board； internal audit
