The Research On Corporate Governance And Internal Control

Corporate governance and internal control have played a more and more important role in modern economy management, and the research of the two has been the most popular and the most important in both theory and practical areas, by the progressively deepen of the market economy system reform in our country and the larger challenge coming after our enterprise entering the WTO. It can be said that a healthy internal control system is actually the reflect of the perfect corporate governance. On the other hand, deepen and innovation of the internal control system will also lead corporate governance better and modern enterprise system built.At present, there are some limitations in our corporate governance, such as " stated-owned shares are too much ", unreasonable share structure, directorate and the supervise meeting's failed to take their responsibilities, unhealthy promotion and obligation system, serious "internal people control" problem in the company as well. The reason caused that the management is in disorder and malfeasances are occurred occasionally is due to lack of effective internal control system or internal control system not working properly. As we start to build the internal control system late and lack of time and good experiences, many enterprises in our country have weak internal control system and many problems caused during the internal control system running. All of the above mentioned will block the healthy development and the effective operation of the modern enterprise. Thus, strengthen and improvement the internal control system and corporate governance will be the key part in the management. Based on the corporate governance and internal control system's relationship and the fact they affecting each other, this article, tries to put the internal control system research under the microcosm corporate governance, and bring forth new ideas how to get the effective internal control system under the corporate governance theoretically and practically. According to our actual situation, the article points out, in order to operate the internal control system effectively, the followings should be met: a fit culture, a health corporate governance and proper organization structure, a reasonable information system and risk management system, a timely accounting process and financial reporting system and a sounded supervise system and reacting system.