The Role Of Auditing In Corporate Governance Research

Based on the result of the division of labor in society and the large-scale production, the separation of ownership and management right in enterprises appeared in the modern company. With the development of company, it saw the clue in the agency problem of the ownership separated from control right for the first time. So corporate governance come out because of the commission agent system, and at the same time serves for solving the commission agent problems. In the view of the generalized corporate governance, the company exits as a benefit community. Then the corporate governance is aimed to harmonize the interests of shareholders, stakeholders and the society,and maximize the society's benefit finally. So the function of the corporate governance is as follows:1.Enhance the quality of decision-making in company by scientific management system,in order to actualize the effective operation in company.2.Collocate the controlling proprietorship and the residual claim to company rationally by the setting of corporate governance structure and the responding system arrangement.3.Harmonize the commission agent relationship and the relationship of right and benefit between parts of stakeholders by the interior and exterior corporate governance mechanism.But, meanwhile, auditing is regarded as the inevitable production of commission agent relationship in the modern company,the external favorable controlling mechanism in the modern company and the tutelary of the securities market, whose validity is being queried. In view of this, this thesis attempts to examine the inherent relationship between auditing and corporate governance, find out the motive power that audit can function in corporate governance, in order to intensify the corporate governance and affirm the meaning of audit.