Mechanism Studies Of Audit Committee Based On The Manager Status Of Independent Directors

As a regulatory thesis, this paper set out from the lake of efficiency of USA audit committee to research the reason of it and propose the improvement methods. Through analyzing, we realised the ineffective of audit committee lied on the public misunderstanding of independent directors who is also the members of audit committee. Supposed on the basis of principal-agency theory , economic people and basic theories of management, we think the statue of independent directors should be managers.Taking independent directors as managers of an corporation , it breaks through the past understanding of independent director and regard them to be pure social economic people who are supported to make contribution to the corporation rather than be a vase or the ornament. All of these support us a new view to understand independent directors, independent directors is a part of principal-agent problem and should be chosen , encouraged and supervised by interest parts just like managers, and which won't do any harm to the independence of director and will enhance it instead. Because our past requisition for independence only remains at threshold standard, we change the attitude towards independent directors to push the independence to a new process thus implement the maintenance of independence conscientiously. Combining with the working characteristic of audit committee, the paper further discussed the choice , encouragement and tied mechanism design for audit committee. In the choosing mechanism , the paper probed into the quality of members in audit committee; In the incentive mechanism , the paper researched the combinatorial model of encouragement and regarded that the simple encouragement would not come into force , however , the correct way is to make the encouraging cooperate with economy; Among tied mechanism , we discussed the self-discipline , other party restriction , mechanism restriction. The paper finally analyzed the audit committee's development in China, and believed that audit committee should find the good way to coordinate the relationship with the board of supervisors .And the he course of formulation of the operation rule should be regulation-oriented.