Stakeholder Governance And The Evolution Of Enterprises Internal Audit

The article analysis deeply a series of the background on corporate governance scandals at home and abroad, so people gradually realize that the traditional model of corporate governance has certain shortcomings. With the enterprise changing in the internal and external environment, especially with the force of the owners of human capital and social capital continuously enhancing, It is a necessary developping trends that corporate governance model from the early shareholders governance to the stakeholders governance. In China, It has a practical significance that stakeholders governance implement the "people-oriented" concept, and promote social harmony and establish the mechanisms for fairness and justice. Different corporate governance model determines the different internal audit management, internal audit's functions and roles, also evoluted constantly with the corporate governance model changing. It continually changing from the financial audit services for owner to the operating audit for manager to the corporate governance audit for stakeholders .Corporate governance is the starting point and basis of the internal audit, they have a common goal, and the internal audit is an integral part of corporate governance mechanism,an effective internal audit is essential to ensure an effective corporate governance mechanism. The stakeholders have a different realistic demand to the internal audit for satisfing their own interests, and internal audit can provide effective services in the balance of asymmetric information for stakeholders, control "internal control", enterprise risk management and strategic control, and reduce the agency costs and increase the value of organizations etc. In view of the status quo of our internal audit, for making it even effective, it must be given a certain independence and great authority. But as a shareholders governance mode, or the shares is highly decentralized, Shareholders" Meetings become very weaken and the board of directors become a "rubber stamp" under the control of the senior managers ;or shares is highly concentrated, the large shareholders will control shareholders' meeting, so control the board of directors. Therefore, the stakeholders's accession will restrain the acts of major shareholders, it is an improvement to corporate governance mechanism. The article gives a comparative analysis and evaluation to the internal audit model and it's advantages and disadvantages on corporate governance, and provide a framework of modern internal audit based on the model of a stakeholder governance. The article think: modern internal audit led by the stakeholders Committee, it can guarantee the independence and authority of the internal audit, it has both internal management and external management's advantages. At the same time, because of modern internal audit deeply embedded the organization, with timeliness and recurrent, it strictly operate in accordance with the professional staff and vocational guidelines, so it can promptly and accurately grasp related information of the organization, and provide the most direct and effective services for stakeholders. Therefore, by the stakeholders committee controlling the board of directors, establishing an independent board of audit that parallel to board of directors, internal audit works under the leadership of its, it should be an efficient corporate governance system arrangements for the external control weakening in current circumstances.