Internal Audit And Supervising State-owned Asset In Corporate Governance

As the important part of economy in out country, it is the key for healthy development of state-owned enterprise to prevent the state-owned assets from draining, and raise the economic effect. In the management framework of state-owned enterprise, supervision system can fill the vacancy of the proprietor of state-owned assets, and internal audit may maintain the benefits of them. This paper will focus on the relation between internal audit and supervision of state-owned assets, and the mechanism for working coordination.Now because of vacancy of enterprise owner, imperfect of corporate governance and weakness of industry administration, internal audit has not been established and maintained. On the other hand, the system of state-owned assets also has troubles in supervising means. Nevertheless, there is relationship of supplement and support between internal audit and supervision of state-owned assets. The supervision system of state-owned assets, as the investor's representative, shall promote the management mechanism and provide advantage environment and standard management for internal audit. Therefore, internal audit has the responsibility to maintain investor's benefit and avoid the embarrassment of administrative inspection.Considering the advanced experience of Singapore TEMASEK Holding, the coordinating mechanism between internal audit and supervision of state-owned assets shall be built, by the internal audit organization under the board of directors and standardize the function of "share holder's meeting" etc.