Internal Control On The Basis Of Coporate Governance

Corporate governance is the core of corporate system. A good structure of corporate governance is the key to increase the performance of management. Internal control is a series of rules, policies and procedures for the govenors to carry out their management plans, which is closely related to corporate governance. The environment of internal control is the base of the whole internal control system, which decides other factors of management. At present, there are some limitations in our corporate govenance, such as"stated-owned shares are too much", unreaseasonable 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 intenal 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.