The Study Of Internal Control Based On The Perspective Of Corporate Governance

Corporate governance structure of the company is the institutional arrangements of management and control, the soundness of its direct impact on the company's internal governance. Internal control is the cornerstone of modern business management, it helps to standardize the unit behavior of accounting, ensure the truth and integrity of accounting information, prevent and promptly correct the errors and irregularities, ensure the safety and integrity of unit's assets, ensure effective implementation of the national laws and regulations and the internal rules and regulations of the enterprise, improve operational efficiency and achieve business objectives.In recent years, due to weak internal controls lead to a lot of company closures, the internal control has become a focus of the attention and increasing attention has been paid. Our internal control issues, outstanding performance is that the corporate governance does not strengthen, the weakening of internal control, the key people override the internal control, management fraud is hard to detect collusion, the case is frequent. It invariably shows that the internal control weaknesses of enterprises generally exist the weak business management, lack the effective corporate governance structure, in turn, we can determine that the invalidation of our internal control is owing to the deep lack of the sound corporate governance structure. Therefore, the implementation of internal control and the role of corporate governance can not be separated.Nowadays science and technology develop quickly in today's world and society change rapidly, but China's economy is also facing transition. In this context, seeking to improve the governance structure of listed companies and improving the ways and means of the internal control of listed companies, it has the strongly theoretical and practical significance. This article study the interaction between the corporate governance and internal control, in addition it provide a new way of thinking to improve the governance structure of listed companies and improve the status of internal controls, so the discussion starts from the following aspects:1,This paper firstly describes the background and significance of writing, having theoretical presentation on the corporate governance and internal control respectively and pointing out that there are connections and differences. Then we analyze the interaction of them, while interactive study shows that there are close links between them: Corporate governance provides a system environment for the implementation of internal control; while the internal control guarantees the effective operation of corporate governance. We elaborate the status of the corporate governance and internal control and analyze the reasons for the formation.2,After the theoretical interpretation about the corporate governance impact on the internal control, we take the listed companies in the two years 2007 and 2008 that certified public accountants issued an unqualified opinion of non-listed companies as the study sample, then we adopt empirical research methods from the ownership structure, board characteristics separately and establish the logistic regression model for the study of corporate governance mechanisms impact on the internal control. Through empirical research we find: The proportion of state-owned shares negatively related to the efficiency of internal control; Board of Directors plays an important role in the building of the internal control system, implementation and efficiency; while it shows no correlation between the size of the board of supervisors and the internal control, the board of supervisors does not play its supervisory role.3,Based on the above findings , this paper presents a series of policy recommendations: Positioning internal control objectives from the perspective of corporate governance;Formulating the perfect system of internal control norms. Optimizing the ownership structure, and gradually reducing the concentration of state-owned shares; Encouraging businesses to corporate cross-shareholdings. Improving the independent director system, and performing the function of its oversight and checks; Strengthening the building of the Audit Committee, and giving full play to the supervisory role; Chairman and General Manager group, trying to increase checks and balances; Improving executive incentives to promote the efficiency of internal control. Strengthening the building of the board of supervisors is to achieve the purpose of checking and balancing. Strengthening the internal control information disclosure requirements and the internal control report should specifically disclose the contents. Strengthen the disclosure regulations of the internal control. Improving the external governance mechanism and actively promoting the process of externalizing the internal control. Summarizing at the end of the text and pointing out some shortcomings of the article and further research.Good internal control is an important guarantee for improving corporate governance, and sound corporate governance is the base of the effective operation of internal control. In fact, effective convergence lacks between the sound corporate governance and internal control structure, even the tight, sound internal control system is also very difficult to achieve the desired control results. Therefore, in order to implement the root causes of effective internal control, the study of internal control must be combined with that of corporate governance.