Internal Control Information Disclosure And Corporate Governance

Since the establishment of the company, the right between the claim and the own equality is department, which result the corporate governance. At the same time, the internal-control appeared. Then internal-control becomes the very important part of the corporation management. Also it becomes the hinge element, which decides the future of the company. During the development of the theory of the internal-control, the corporate governance plays the important role in it. Because the relationship between the information disclosure of the internal-control and the corporate governance can help the investors know the quality of the finance report. In this essay ,through the introduction the fames which are famous in abroad ,such as the COSO Cadbury report and so on ,and use some examples in China, on the basis of the concept of Accountability, we recognize the essential of establishment of the institution of the internal-control information .In this essay there are five parts to declare the main point: the relationship between the information disclosure of internal-control and corporate governance. First, through introducing the basic concept and the history process and the development current of internal-control, we get to know the close relationship of internal control and corporate governance. And the basic reason of the cases of falsehood accounting disclosure in the Chinese capital market is the result of the lost of balance of internal control. The problem needs to be solved is how to set up the criterion of corporate governance, and how to make up the disfigurement of internal control. On the second part, manifold theories of internal control frame are introduced, and they show that the disclosure benefit the understanding of internal control system, and protect the related parts of benefit and perfect the corporate governance. And then the basic concept and effect and the gist of information disclosure of internal control and the Sarbanes- Oxley Act of 2002 are introduced. And it makes us realize that it's necessary to disclose the internal control information in corporate governance. And the measures about how to improve on the information disclosure of internal control are brought forward in the basis of analysis the current status of internal control information disclosure in China, and on the use of experience of other country.