The Research Of The Internal Control Issues Of A Company Based On Corporate Governance

Modern corporations system makes the management apart from the ownership, the estate and market for managers come forth accordingly, which meets the needs of the division of social works and the demands of economy development. But the separation of ownership from management also brings forth some issues, which have increasingly aroused the public attention. The significant financial scandals resulted in the bankruptcy of many internal and domestic well-know business enterprise since 80s of twenty century, and the rights and benefits of the shareholders and other stakeholders were damaged. Public starts to doubt the quality of the financial information and the implementation situation of the corporate government and internal control of list companies, the monitor level of capital market. We always look for the reason from the procedures of mutual check, mutual supervision, and mutual double check of internal control system when the internal control system does not work well, and not fully realize the problems led to internal control failure which are caused by the disjunction of internal control and corporate governance structure and inner defect of corporate governance structure. In fact, a hard, well-organized internal control system could not reach at the predicted control results if there is no a perfect corporate governance structure and a effective junction with internal control.This article discusses how the corporate governance structure influences the internal control system of A company by combining with the actual position of it from the corporate governance structure view, consequently help A company improve its management level, achieve its operation aim. Firstly the theories of corporate governance and internal control were briefly summarized, the relationship between them and the influence of corporate governance structure to internal control was discussed. Secondly, this article analyses the corporate governance structure of A company and the actuality and issues of the internal control of A company. Thirdly, based on the theoretic analyses, this article analyses the reason for the issues; Finally, this article brings forward the bellowing suggests for A company: the official secedes from the operation management of A company, enhancing the function of board of directors, enhancing the monitor the supervision to senior management and the right balance, establishing the incentive system related to the shareholders' benefit, establishing the effective evaluation system to internal control.