The Research Of Internal Control Problems On The Basis Of Corporate Governance

Internal control is an inevitable product of social development, and it is a system of self-criticism, self-adjustment and self-restriction. Internal control can guarantee enterprises manage effectively, offer reliable financial statements and other information, protect the security and integrity of the enterprises' property, and help enterprises carryout the related policies and regulations. In a word, internal control can help enterprise realize its goal.Our country has not yet established perfect and operational internal control system because the internal control environment is imperfect which makes internal audit cannot operate effectively, information communication is difficult. Ineffective risk control, the information disclosure of internal control is not enough.. With the extension of the concept of internal control and enhancement of function of internal control in company. corporate governance and internal control which belong to different field are getting in touch closer and closer. From the above we can know that how to improve the internal control, how to deal with the relationship between internal control and corporate governance have become an important topic.First the paper introduced why study the internal control problems based on corporate governance, The state of corporate governance research at home and abroad, the origin and evolution of the internal control. On this basis, the writer used Principal-agent theory describing the relationship between the Corporate governance and internal control. It is concluded that the relationship between the Corporate governance and internal control is like the relationship between the internal management system and environmental monitoring system. Subsequently, the writer combinated the CAO case, analysed the present situation and the internal control problems more specificly, analysed the root that caused internal control's failure from Internal control elements, put forward that a sound internal control environment is the basis for effective implementation of other elements. Finally, From the angle of corporate governance to improve our internal control. Mainly to improve their internal control environment and improve the internal audit system, and incentive and restraint mechanisms to strengthen internal control and information disclosure. applying game theory to analyze the significance of the Board.