A Study Of Family Business' Internal Audit Based On Corporate Governance

China has achieved rapid economic growth through reform and opening up to the outside world over the past two decades, private capital economy have become important drivers for its growth. China's auditing came about with reform of state-owned enterprise. Although internal audit of family business have obtained certain achievement, it still have a lot of shortcomings. So it is important to improve internal audit and advance the corporate governance in private enterprise.The study object of the thesis is family business' internal audit. We analyze the relationship between internal audit and corporate governance on the base of agency theory and accountability theory. In this process, we research from the characteristic and shortcomings of inside governance structures in family business, in order to illustrate the corporate governance and internal audit.According to status quo, we found there are many problems in family business' internal audit. First, there is a lack of understanding of internal audit. Second, the scope is confined, and the function of IA is simplex, while the internal auditors have low-level education background. Finally, it exists confusion of internal audit organization. They all affect the improvement of internal auditing and corporate governance. In addition, the thesis also cites some cases as quotable experience.In the end, this paper puts forward proposals to improve the internal audit of family business in our country. First, change the f t method. Second, the firm should improve the corporate governance structure and promote the unctions and content, broaden the auditor's scope and innovate the audi diversification of owner's equity. In addition, the government should also take the effects to strengthen the legal system of internal audit.