Research On The Relations Between Internal Control And Financial Fraud Governance Based Taiwan Note Incidents

Enron's bankruptcy is the largest scandal in the U.S. securities history so far, the global capital market investors thinking the impact of accounting methods and accounting principles, auditing, business model and so will play a revolutionary change. Corporate governance in Taiwan is still not universally implemented, refer to the limited number of enterprises. Thus, if the internal control system from the perspective of the structure and practices, to explore the internal control system to help enhance the positive and negative relationship between financial fraud management should help the Taiwan government and business community on the implementation of corporate governance. This thesis found that:(1) top executives of fraud prone to lack of effective internal control system in the body; (2) internal controls to reasonably ensure that its business performance, financial reporting reliability, follow the relevant laws and three purposes; (3) The Board is the main mechanism of corporate governance, the independence of the board functions and facilitate corporate governance, but the functions of the board alone, not against big business, Chairman, Directors and senior managers fraud. Therefore, this article proposes that, to strengthen Taiwan's financial fraud management should pay attention to the implementation of the following:(1) show the "highest style of business ethics; (2) employing the most honest and ethical staff; (3) establish an effective risk management plan and a sound internal control system; (4) ability to establish and maintain an internal audit function; (5) Board of Directors (Audit Committee) continued to monitor the company's operations, policies and operating procedures; (6) Enhancing the listed company or financial statement disclosure and auditor independence.