| The separation of owner's right and management's right is the cause of corporate governance, but also the cause of internal audit and external audit. As the two cornerstones of the corporate governance, internal audit and external audit plays an irreplaceable role in corporate governance. However, with the financial scandals and the financial crisis broke out frequently, the effectiveness of corporate governance is questioned more and more by the people, and the audit role has gradually become the focus. Audit role will directly affect the effectiveness of corporate governance, so if internal audit and external audit can play a role coordinately, it will be bound to strengthen the effectiveness of corporate governance. In order to ensure the internal audit and external audit in corporate governance to play better role, first of all we must understand the relationship of internal audit and external audit. So the article overall analyze relationship of internal audit and external audit. In the process of research, the article mainly uses normative research methods, combining with theory of the Audit, Accounting, Economics and Management to study the basic research and analysis related issues. Standing position of corporate governance, Article comprehensively and systematically analyzes the relationship between internal audit and external audit from two points of view: outsourcing of internal audit and coordination of internal audit and external audit. In addition, the article also from the perspective of Audit Committee carries out an analysis of the relationship between the internal audit and external audit. As a bridge of communication between internal audit and external audit, Audit Committee's role is the key common factors to determine the internal audit and external audit coordination. By analyzing Audit Committee's role, it illustrates the relationship between internal and external audit. Through research, the article deems that outsourcing of internal audit is integration of the internal audit external audit resources. It is no absolutely good or bad, the company should select the implementation of the form of internal audit based on its actual situation. The best way to improve corporate governance is the coordination of internal audit and external audit. At last article suggests the effective ways to strengthen coordination between internal audit and external audit. It has an important reference value for improving corporate governance and achieving company's target. |
