Legal and Economic Analysis of the Triple Audit Institution in terms of Corporate Governance

Economic institutions, by receiving resources from the community, are gaining significant economic, social and political power, and so their managers are expected to be accountable to society. Since the 1990 s, due to the increased unexpected failures of large companies, attention was drawn to corporate governance, and the need for a integrated auditing entity, including independent auditors, internal auditors, and the audit committee, was felt.
In this research, using descriptive-analytic method, in addition to describing corporate governance and explaining the tripartite audit entity in it, the function and the economic analysis of this subject has also been reviewed.
The research results express creation and implementation the tripartite audit entity that forecast in corporate governance. The economic analysis of the Audit Authority indicates several functions for which, among others, is increased accountability of managers, reliable financial and non-financial reporting, increased transparency, reduced information asymmetry of stakeholders and managers, and decreased fraud in the company.