A Research Of Internal Control Based On The Corporate Governance

As the foundation of the modern enterprise management,the internal control is an important symbol to measure the level of the management of enterprises and also a reliable guarantee to the Continued and healthy development of enterprises.Domestic and foreign financial scandal breaking out more frequently highlights the internal control in the enterprise's status and role.In recent years,Our country began to build the internal control,and has introduced a number of internal control standards of listed companies,for example,"Shanghai Stock Exchange listed company internal control guidelines" promulgated in 2006,"Shenzhen Stock Exchange listed company internal control guidelines";"basic norms of corporate internal controls" jointly issued in 2008 by Ministry of Finance people's republic of china,China Securities regulatory commission,National audit office of the people's republic of china,china banking regulatory commission and CIRC.A sound internal control mechanism should be supported by the well corporate governance structure,while internal control of innovation and deepening,also will promote the improvement of corporate governance structure and the establishment of modern enterprise system.The relationship of two are mutually interdependent and mutually reinforcing.Judging from China's research on the current situation of internal controls in theoretical and practical,compared with other countries the start is late,and the research combined corporate governance with internal control is less.Based on the above reasons,,this article analyzes these factors of company governce which are quite big to the internal control influence mainly through the construction of internal control system under the angle of corporate governance,and conducts the key research to the influence to the big factors,governs by the time company with the internal control consummates unceasingly,the realization company's management goal,enhances the company's management efficiency,the effect,finally promotes the company competitive ability.This article firstly reviewes and summarizes the studies of the corporate governance and internal control in the past.Secondly this paper details the theory of corporate governance and internal control and the relationship.Thirdly on the basis of relationship of corporate governance and internal control,this paper elaborates the influence of corporate governance to internal controls.Then collecting data on listed companies in Shanghai,the empirical study analyses the effect caused by the corporate governance structure on internal controls.The empirical research indicates the results as follows:first stockholders' stock rate is negatively correlated with internal control efficiency;board of directors plays an important role on the internal control system construction,implementation and efficiency.But the size of the board of supervisors is negatively correlated with internal control,the board of supervisors don't play its role in supervision.According to the results above,the article suggests some advice which contributes to improve the internal control system of enterprise through pointing of view of internal control objectives from the corporate governance,and optimizing ownership structure,strengthen the building of the board of directors and board of supervisors and improve the information disclosure system of internal controls.The last conclusion of the above every part,put forward myself view on the limitation of the thesis and direction studied futher in the future.