This chapter reviews the development of auditing standards and practices in China from 1995 to 2015. From the perspective of an institutional environment and its improvements, it is documented that China's weak institutional environment led to lower supply of, and demand for, quality audits, while institutional improvements have resulted in improving the condition. High-level government ownership created low demand for high-quality audits in the Chinese stock markets. To improve audit quality and increase the credibility of financial disclosures, the Chinese government has gradually adopted and implemented a series of auditing reforms, which have relatively improved audit quality over the last two decades. Institutional and regulatory changes have been shaping the development of external auditing, and have spawned a stream of auditing research using the unique setting of the emerging capital market in China. The Chinese experience can have significant implications for policymakers and regulators in other countries, especially for those in emerging economies.