Different Model Of Corporate Governance, Internal Audit Mechanism

Corporate governance, as a solution to the modern corporate ownership and control of a system of separation of the arrangements. is to reduce the financial information asymmetry as a result of the agency costs. As an important component of the intenal corporate governance, intenal audit can play the role of feedback,evaluation and supervision in the fields of financial fraud,disclosure and transmission of financal information, which it also can improve corporate governance constantly. Different models of corporate governance determines the different mechanisms of internal audit. Internal audit mechanism to show the different characteristics in the equity-oriented corporate governance model and the creditor-led corporate governance model. By comparing the two types of corporate governance model of the internal audit mechanism, we get a lot of inspiration in analysis of the listed company's internal audit mechanism in China.Presently, China's governance structure of listed companies are still not perfect, there are many problems in listed company's internal audit mechanism such as the fuzziness of internal audit position,the non-independence of internal audit organizations,the restriction of internal audit functions, so internal audit mechanism to play a limited role in corporate governance. To improve listed company's internal audit mechanism,we should clear position of the internal audit,improve the independence of internal audit and expand the internal audit's function.