Density functional theory is used to determine the reaction mechanisms of CO oxidation and the active oxygen species on a Au/TiO2 model catalyst. The model consists of a Au rod supported along the TiO2 [1 (1) over bar0] direction of the TiO2(110) surface. An interfacial Au/Ti5c site at the interface boundary is identified to be particularly active toward O-2 adsorption and dissociation. At this site, O-2 dissociation has an energy barrier of 0.5 eV, which is facile at room temperature. The resulting adsorbed Au/O/Ti-5c oxygen species are shown to be stable and active for CO oxidation under relevant reaction conditions with an activation energy of 0.24 eV. Furthermore, the adsorbed Au/O/Ti5c oxygen species functions as an electron reservoir, and it lowers the oxygen vacancy formation energy of a surface lattice oxygen (Obri), as well as the Ti interstitial formation energy, due to electron transfer from high-energy defect states to low-energy p-states of the adsorbed Au/O/Ti5c oxygen species. Hence, the Obri species is activated at the oxidized Au/TiO2 interface boundary and the energy barrier of CO oxidation with Obri is calculated to be 0.55 eV. Thus, the CO oxidation reaction can proceed at room temperature either via a Langmuir-Hinshelwood mechanism with an adsorbed Au/O/Ti-5c oxygen species or via a Au-assisted Mars-van Krevelen mechanism with Obri.