Governance Function Of Internal Control Research

In recent years, the common enterprise bankruptcy, the company closed down the status quo,indicating that the effective operation of internal control depends not only on the degree ofperfection of the internal control system, but also depends on the attention of corporate investors onthe effectiveness of internal control information and corporate governance layer on the internaleffective supervision and control.Therefore, to ensure the effective operation of internal control, andgive full play to the role of internal controls protect the reliability of financial information toeffectively protect the interests of investors, it is necessary to strengthen internal control governancefunctions.This article first through the analysis of domestic and international discourse on the internalcontrol governance functions and research results, research the meaning of the internal controlgovernance functions, mainly in and play the way and stressed from the Audit Commissionsupervision of internal control, internal audit is responsible for evaluation report issued on thereport of the Board and external auditors on internal control has played the governance of theinternal control function.Followed by the empirical analysis to demonstrate the internal controlgovernance functions effectively to improve the business performance of assumptions to arrive atthe internal checks and balances of the largest shareholder of the listed company's efforts to controlthe board of directors, chairman of the board to serve as general manager and is set the auditCommittee has limited impact on firm performance; the proportion of outside board of directors andminority share holders to participate in governance, the efficiency of restricting the largest shareholder have a significant impact on firm performance. Finally, the internal control of our internalcontrol governance functions play a major leader in the independence,internal authorizationbehavioral problems, the concept of internal audit issues,internal control disclosure of informationas well as the quality of personnel issues,come up with effective countermeasures, including theestablishment by the to varying degrees, the scope and focus of authorized audit committee ofindependent directors; need for corporate control link; shift the focus from the internal inspectionand oversight to the internal analysis and evaluation of internal audit; clearly defined internalcontrol disclosure of information the main responsibility should be to establish a sound internalcontrol information disclosure system, and its specification; encourage listed companies to voluntarily disclose internal control,and supervision and management; enterprises to establishlong-term incentives.