The Research Of Corporate Governance Evaluation System Of Perspective On Internal Audit

Over the past decade, corporate governance has become a hot issue of global concern. Investors are not only paying attention to the evaluation of the company achievements, but also emphasizing on the condition of corporate governance, which is becoming one of the most important factors of decision-making. Corporate governance can be divided into two main aspects of governance structure and governance mechanisms. In order to enhancing the corporate governance level, the total evaluation must be paid attention to. Many famous international organizations and institutions have built up their evaluation system. These systems are not only contributing for the investors to understand the corporate governance in order to lower the damage from managers; they also can provide the healthy suggestion of corporate governance. But nowadays, the related study on governance evaluation is mostly made from outside, the evaluation objects are mainly listed company, and the evaluation contents are mostly focused on the governance structure, seldom on governance mechanism.With the development of the concept, the function of internal audit also extends continuously. In 1999, the latest definition of IIA is: Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. The new definition pushed the development of the internal audit into a lately higher layer, emphasizing the internal audit's evaluation function to corporate governance. At the same time, internal audit and corporate governance have same theories foundation-the fiduciary responsibility theories. According to these, this paper manages to carry on the evaluation to the company from the angle of the internal audit. On the basis of absorbing and digesting the domestic and international research achievement about the company governance evaluation system, the author has established the total firmament of company governance evaluation system from governance environment and governance mechanism.Finally, in order to carry on the substantial evidence examination to the system, this paper evaluated the corporate governance of two companies, one listed company and one no-listed company. And we have put in many suggestions to weakness of the companies. We hope this evaluation system can provide some references for our enterprises' corporate governance.