The Internal Audit Research Based On Corporate Governance

After the outbreak of the financial scandals in the Enron and WorldCom and other companies, corporate governance has become the focus that most listed companies put on. In the revelations course of WorldCom fraud, the internal audit department performed outstandingly, and has got the recognition from listed company and regulatory. Internal Audit has thus become the focus of corporate governance. Internal Audit and the Board, senior management, external audit together form the four cornerstones,and this has become consensus in the international corporate governance community and the internal audit community.At present, the study about the international corporate governance in the perspective of internal auditing is relatively mature, but few domestic research concerned this part, and it is still a relatively new field. Based on this, this paper attempts to do a in-depth analysis of the internal audit and corporate governance, as well as its elements complement and the relationships among these elements from the perspective of corporate governance, and try to do some efforts to the inadequacies of domestic research. Meanwhile, this paper has combined the specification and empirical research methods, and studied internal audit survey data of listed companies domestic and international. And the results show that, the China internal audit is not optimistic, for there is large gap between the international internal audit and the China's ones in the internal audit agency setting, the scope of internal audit, internal audit and other aspects of the quality of personnel, which has been the limited role for corporate governance. Finally, basing on the starting position and responsibilities of the internal audit in corporate governance, and drawing on international experience of internal audit, the paper have shown recommendations for improvement in the shortcomings of our internal audit, and through case studies, it have emonstrated the feasibility and reality of improving the internal audit from the perspective of corporate governance.