Research On Audit Market Under Property Right Motivation

Independent audit occurred as a result of the separation of property right and operation, and property owners use independent audit, the indirect means to supervise whether the responsibility of the operators has been finished or not, and make sure their own property rights won't be invaded. Thereby audit can reduce the enterprise'agency cost, and can improve the capital market efficiency in the allocation of resources.Audit is a mechanism designed to protect investors'property rights, and aroused from the demand of investors to protect their property rights, then investors'property in different states will create different audit markets. Different states of property right can have a fundamental impact on the audit market, and then make the audit markets differentiate in efficiency and effect between clear-attributed property right and ownership-absent property right.China's audit market just developed for nearly 30 years, compared to western developed audit market, the time is very short. So problems and difficulties encountered can be imagined, then research on China's audit market to reveal the status and changes in trends, and exploration on the healthy developing way of emerging market, are of very significant and profound meaning.This article is divided into five chapters. As the first chapter, it makes an introduction about the background, the meaning, Literature Review and the framework of this article. Chapter two is talking about the literature review. In this chapter, the review is taking on in two aspects, one is about audit market, and the other is about property right. Chapter three and Chapter four are the main body of this article. Chapter three discusses about the audit market under property right motivation. It analyses the relationship between the property right motivation and audit market, and different effects produced by different property right motivations on audit market. Chapter four talks about Chinese audit market. Because the target clients of our audit market are always listed companies and the listed companies are always state-owned entities, in this part, the discussion about the audit market under property right motivations is based on the state-owned property right motivation in our country. And also some advices are offered to improve the property right concerned with the audit market in China. The last chapter is conclusion of the whole article. It is mainly about the conclusions of the discussion and the shortcomings in it, and some opinions for further research are also given here.