Research On Internal Audit System Of Family Enterprises

Family-owned enterprises have a long history and their governance models have strong competitiveness in the world.Their existence is reasonable and can be used for reference.However,family companies rely on family governance and relationship governance governance models also have certain drawbacks,such as the lack of internal checks and balances,which makes it easier for family companies to generate internal controllers,and thus affect family business growth.In this context,the internal audit of the family business came into being.Due to the short development time,internal auditing in China’s general family-owned companies has problems such as unclear internal audit orientation,lack of authority,independence,and poor internal audit quality.The internal audit system has not played its role as an important means of corporate governance.The role.Therefore,this article takes the listed family company A as a case study,introduces the company A’s internal auditing system experience,summarizes the company A’s internal audit characteristics and causes,and analyzes and evaluates A company’s internal auditing effect through quantitative and qualitative methods.A company’s internal audit system development experience.This article believes that the general family business can get the inspiration from the establishment of the family company’s internal auditing system from company A’s practice:I)adjust the affiliation to ensure the independence and authority of the internal audit;2)establish a dual-object reporting model to enhance the efficiency of internal audit;3)Establish a sound internal audit staff training mechanism to improve the internal audit quality;4)Adjust the internal audit focus according to the actual development of the company.The research in this article enriches the achievements of the family company’s internal audit case study field.