Research On The Internal Audit System In Corporation

After twenty years' reforming and opening, China makes great changes in social economic. As the main bodies of social economic, corporations face more complicated surroundings and appear many problems in corporate governance, such as "Moral Risk","Information Asymmetry" and "Inside Control". These will do harm to the benefits of most stockholdings. Especially, in recent years, cases of financial scandal increased rapidly. Therefore, establishing the self-restraining mechanism becomes the hot problem. In this situation, internal control system becomes more and more important. The emphasis of this thesis is to discuss the establishing of the Audit Committee and enforcing Internal Audit. The thesis is composed of four parts: Part one: General introduction of internal audit and corporate governance and the relationship between internal audit and corporate governance. Part two: Introduction of the four models of internal audit and the difference of them. Part three: Through the contrast between the west and China, find out the main shortcomings of internal audit system in China. Part four: The author gives some suggestions to let the internal audit system plays its roles. Through this article's discuss, it is meaningful for the corporate to improve its self-quality and better its corporate governance. It is useful for the corporate to enforce the management and enhance the economical benefit. All the process of my writing this thesis, professor Zhang gives me a lot of help and guiding. Here I say "thank you" to him.