Internal Audit Performance Research Based On Corporate Governance

Internal audit plays an active role in standardizing corporate governance,improving business management,and improving corporate economic benefits.In order to further develop the internal audit of Chinese enterprises,it is necessary to study the problems existing in the process of its development in time and seek corresponding countermeasures.Company A went from being listed to being exposed to financial crisis,and finally the capital chain was broken,which led to the evaporation of market value and delisting.There are many reasons for this.The internal audit department failed to effectively prevent the company’s business risks and failed to play its due role,which is an important reason.For this reason,this paper takes M Company,a company of the same type in the same industry,which has achieved year-on-year growth in net profit and good internal audit performance as the reference object,and compares and analyzes the two companies from the perspective of corporate governance.Research the reasons and put forward specific suggestions,in order to provide reference for improving the internal audit performance of Company A and giving full play to the role of internal audit.This paper firstly uses the performance prism method to determine the internal audit performance evaluation indicators from five dimensions of stakeholder satisfaction,contribution,organizational strategy,business process,and organizational capability,and uses the analytic hierarchy process to determine The weights of different indicators are used to construct an evaluation system.Then,on the basis of comprehensively summarizing the internal audit status of Company A and Company M,using the index system to evaluate and compare the internal audit performance of the two companies,it is found that the overall performance of the internal audit department of Company A is at a poor level.Then,we further analyzed the reasons for this situation from the perspective of corporate governance,and found that Company A had an unreasonable shareholding structure,unclear affiliation of the internal audit agency,and insufficient attention and support from the governance layer on internal audit activities,which seriously affected the role of internal audit,the problem of improving performance.Finally,the corresponding countermeasures are put forward in response to these problems: by reducing the shareholding ratio of major shareholders,implementing equity diversification,implementing employee shareholding and equity incentives,etc.,to optimize the equity structure;by implementing the internal audit system led by the board of directors and rational allocation of internal audit To optimize the internal audit system;improve the awareness of the importance of internal audit,increase investment in internal audit,strengthen internal audit plan and report approval,make full use of internal audit results,etc.,strengthen the board of directors’ attention and support to internal audit activities.The research conclusions of this paper have certain reference significance for enterprises to improve internal audit work from the perspective of corporate governance,improve internal audit performance,give full play to the role of internal audit in increasing corporate value,and improve the level of corporate governance.