Governance Oriented Internal Audit And National Audit Relationship Research

Management (Governance) is a word which is derived from the Latin and contains meaning of lead, control and manipulation. The United Nations Commission on global governance (CGG) defined governance as the sum of many of the common method of various things, which is used to manage public or private individuals and institutions. The aim of management is to reconcile the interests, which is continuous process, Such as corporate governance, national governance and so.Internal audit is an independent, objective assurance and consulting activity. Through systemic approach and specification method, internal audit estimates and improves effect of risk management, control and governance processes to help the organization to achieve its goal. Practice has proved that, the internal audit plays a very important role in improving the corporate governance, and optimizing the control environment, risk prevention and so on. Internal audit has become one of the four pillars of effective corporate governance.National audit is implemented as supervision of activities by the state audit authorities. In July2011, Liu Jiayi auditor general published an article entitled "the national audit and national governance" speech in China Auditing society third director forum. He said the national audit is a kind of system arrangement, which is endogenous and indispensable tissue cell of state governance. The national audit essentially is the immune system to protect the healthy operation of the national economy and societyIn the governance oriented, the internal audit is the instrument of corporate governance. And national audit is a state governance tools. What are the relationship between internal audit and national audit. It has become the auditing theory and practice workers an urgent need to study and solve major problems that how to coordinate relationship between two and then take shape economic supervision, How better play the role of audit supervision function,In the first place, this paper analyses the difference and connection between the internal audit and national audit, systematically introduces the history and current situation of Chinese internal audit and national audit relationship. On this basis, starting from the relationship between corporate governance and the governance of the country, respectively discusses the governance oriented internal audit and national audit scope of duties, and puts forward relationship of the internal audit and national audit; Secondly, based on the positioning of this relationship, this paper demonstrates the internal audit and national audit coordination necessity and feasibility, and then put forward the two coordinated content, method and implementation path; finally, the relation with the national audit after China’s internal audit transformation and upgrading are discussed.