Research On The Effectiveness Of Internal Audit Authority Allocation From The Perspective Of Corporate Governance

At present,the internal and external environment of China’s enterprises is constantly changing,the complexity and uncertainty of the economic environment has increased,and enterprises are facing more risk challenges,which has put forward higher requirements for the development of internal audit,requiring internal audit to play a greater role in improving the efficiency of business operations,standardising internal management,controlling corporate risks and increasing corporate value.Only when internal audit is fully effective and achieves its expected objectives can it effectively improve the company’s operations and promote its development.The effectiveness of internal audit is closely related to the environment in which it operates,and sound corporate governance is a prerequisite and key to the effectiveness of internal audit.Therefore,from the perspective of corporate governance,it is important to study the effectiveness of the internal audit department’s performance of its duties and the adequacy of the exercise of its authority in order to bring the role of internal audit into play.In this paper,a comparative analysis of the current situation of the allocation of internal audit authority between Company A and Company B is firstly conducted to analyse the differences in the effectiveness of the allocation of internal audit authority between the two companies in terms of the compliance of internal audit authority and the effectiveness of internal audit execution.Secondly,the reasons for the differences in the effectiveness of the allocation of internal audit authority between Company A and Company B are analysed from the perspective of corporate governance,including:differences in the shareholding structure of the companies,differences in the allocation of control,gaps in the effectiveness of incentives and gaps in the functioning of disciplinary mechanisms.Finally,based on the theory of corporate governance and its influence on the effectiveness of internal audit,the following countermeasures are proposed to improve corporate governance and enhance the effectiveness of the allocation of internal audit authority in response to the specific causes of the difference in the allocation of internal audit authority between Company A and Company B: firstly,adjusting the shareholding structure and improving the level of shareholding checks and balances;secondly,optimising the allocation of control power and improving the efficiency of corporate governance;thirdly,improve the remuneration system and enhance incentives;fourth,improve internal control and strengthen the restraint mechanism.This paper takes corporate governance as the entry point,links corporate governance with the effectiveness of internal audit authority allocation and proposes countermeasures to improve corporate governance and enhance the effectiveness of internal audit authority allocation,which has implications for optimising corporate governance structure,improving corporate governance and thus enhancing the effectiveness of internal audit authority allocation in enterprises,and helps enterprises improve their competitiveness and achieve high-quality enterprise This will help enterprises to improve their competitiveness and achieve high-quality development.