There are also views on the function and significance of separation of property rights. The audit behavior of certified public accountants based on bounded rationality is also the starting point based on the needs of clients and agents.
Its purpose is to reduce the agency cost in the principal-agent relationship, maintain the principal-agent relationship and improve the principal-agent efficiency. Because objectively speaking, the subordinate function of independent audit is to limit the speculative behavior of enterprises, and the separation of property rights improves the transparency of public accounting information, which fully ensures that iIt accounting information can play the role of authentication, evaluation, governance and signal transmission.
It is believed that in countries with a high degree of investor protection, the agency cost and efficiency caused by the separation of property rights can be solved mainly by perfecting the legal system and strengthening the comprehensive management of regulatory agencies.
Because the essential role of accounting and auditing corporate governance is to strengthen the reliability of corporate accounting information for T's efforts to eliminate the information asymmetry between bamboo authorities and external investors, and ultimately provide a stable contractual cornerstone for entrusted agents.
Separation of property rights in modern enterprises. Because it is difficult for investors to supervise the behavior of managers and other agents, the separation of property rights enables enterprises to achieve more incentive compatibility by formulating appropriate salary contracts, and auditing provides institutional environment guarantee for the smooth formulation and development of these contracts by determining and removing entrusted economic responsibilities.
From the perspective of principal-agent, the audit supervision of certified public accountants plays an active role in optimizing the corporate governance structure and protecting investors.