Study On Audit Supervision Mechanism

At the beginning of the century, a series of company financial scandal took place,which also resulted in the bankruptcy of some famous accounting firms. All theseevents made the whole world focus on company’s audit regulation and corporategovernance. At the same time, this global financial crisis spread to our country. Withthe adaptation and integration to world economy, the capital market in our countrycontinues to expand, besides the number of listed company keeps increasing whoseinfluences in economic and social life become bigger and bigger. Therefore, the auditreports that accounting firms make which are also parts of social credit system takemore and more important oversight responsibility. Now the significance ofindependent auditing to company governance and the complicated environments auditregulation confronts has been realized no matter in the theoretical or practical circle.At present, in terms of relevant studies of audit regulation and companygovernance,most scholars tend to focus on the management problems exist in auditedcompanies while ignoring the important role audit regulation plays; other scholarssimply study the auditing of accounting firms while overlooking the interaction ofinternal auditing and external auditing at the background of company governance. Thisessay firstly analyses the worldwide company financial scandal at the beginning of thecentury, and dissects the problems of company governance and audit regulation thattriggered these scandals based on the theories of company governance and auditing. Inthe latter part, the essay also collects the achievements foreign countries has gained incompany audit regulation, and attempts to find proper methods to better the companyaudit regulation system in our country.