Modern Corporate Governance, Internal Audit Research

"Corporate governance is the key word in 21 century." At the beginning of the century, especially after the outburst of Asian financial crisis, not only the Asian countries but also another associations and organizations begin to further innovation of the corporate governance, many documents have been published.In the corporate governance structure, the internal audit functions' set-up and practice is an issue that should not be overlooked. Over the years, The academic communities and practitioners in two parallel line on the study of modern enterprises internal management and the modern enterprise internal audit. At the end of 2002, especially after the Enron,WorldCom financial scandals, people begin to pay more and more attention to the foundation of effective internal audit, in order to strengthen the construction of corporate governance, and to accelerate the development of economy.U. S. Sarbanes-Oxley Act of 2002 is thought about as a way to reduce the negative effect with Enron, WorldCom, and many other financial scandals. Internal auditing begins to be the fourth key of enterprise government. What are the functions of the internal auditing? How to bring them to play? What are the pledge measures? Therefore, the purpose of this paper is through combining internal audit and corporate governance in high, wide view to study the internal audit in order to advancing the suggestion to the internal audit.