Corporate Governance-A New Inspect Of Internal Control

Since 2001, along with the US Enron, World Communications, Xerox and Merck, a large number of well-known international pharmaceutical companies because the financial accounting scandal caused the US capital market volatility. Domestic "Zhengbaiwen", "Maikete", "Dongfang Electronics," "Yin guang xia," "Blue Sky shares", "Zhong Hang You" accounting swindle case of listed companies have beeb seen in the media, which has become the focus of people's attention.After January 2005, a list of companies' management "Lok Ma craze," and internal control deficiencies considered to be one of the main reasons leading to the managers of fraud, substantive sector of the role of internal control expectations. However theorists to the study of internal control has not yet risen to the level of governance, which theorists and substantive differences sector is the starting point of our study.Management override internal control is the deadly weakness of internal controls, the inherent deficiencies of internal control is that it is designed and implemented by management decision, which is difficult to generate sufficient self-management binding. Substantive sector's lack understanding the inherent deficiencies of the internal control is one of the reasons leading to these differences.We think that only after we understand the nature of internal controls, can we get in-depth understanding of management override internal control. In essence, like external market control mechanism, internal control is a mechanism to achieve management control. due to different ways of management control, we can divide corporate governance into "Britain and the United States" model --- external markets represented control governance model, and " Japan and Germany" model...