Since the implementation of economic reform and opening-up policies in 1978, an increasing number of Chinese firms have chosen to open listings on domestic and overseas exchanges. Meanwhile, an increasing number of foreign companies have established their branches or have joint ventures with local firms in China. As investors need reliable accounting information to make their business decisions, they demand firms to have independent auditors. It is important for investors to understand the role of an independent audit, especially for the international investors. In this chapter, we discuss the development of independent auditing, the evolution of Independent Auditing Standards, the education of CPAs, accounting firms and the development of the independent audit market.