Corporate Governance Structure And Internal Control

The structure of enterprise management is the most important frame of organization, and it mainly contains two levels the eternal and internal system of enterprise. There are some problems in the management of our companies such as the existence of one big share causes the convention of shareholders, board of directors, board of supervisors to be useless as well as the problems of "inner person control". And the author considers that the key point lies in the incompleteness of inner control.The theory of inner control has experienced a long history from tied up theory to whole frame theory which is widely accepted, and it mainly discusses on accounting, auditing, and management. Although it has broken the range of traditional accounting control, it still mainly aims at the control of common clerks and medium clerks as well as material resource, and the control of higher manager, which is not contained in the whole control system.From the theory, the enterprise management structure is the precondition to make inner control move effectively and ensure the realization of the inner control function, and also is an institutional circumstance to take inner control, and inner control plays the role of management supervisor in the structure of enterprise management and they develop together.This article tries to combine enterprise management in view of inner control and inner control based on management level together to do some discussion, and ties to deal with some problems on the management level Like "inner person control" by perfecting the inner control on management level.The paper is divided into 5 chapters.The first part: presentation of structure of enterprise administration. At first from the comprehension of scholars around the world to enterprise administration theory, it tells the comments of the author, then points out the questions like "inner person control" and analyzes the reasons, and showsthat all the problems are caused by the weakness of supervisory power. At last it points out the way is to reinforceinner control.The second part: basic theory of inner control. Firstly it repeats the typical definitions in the four periods of inner control. And based on this analysis, it points out the author's definition to inner control, which splits the inner control into management level and administration level. In the end it lays out three principals of inner control.The third part: the relationship between enterprise administration and inner control. It discusses mainly from six aspects and points out they are relative and having the same media, objective, source, and direction of development, also both of them are connecting people.The fourth part: the present situation and the direction of development. At fist it points out the current status is there are too many targets which focus on standard management, while neglecting effective objectives. The range of this research only includes inner control on management level, and seldom concerns about the inner control on administration level. At last it points out the direction of development should be focused on management level, which is taken as the essence of inner control.The fifth part: perfecting inner control on management level, and resolving problems of operating enterprises. This part is the concentration of the opinions in this article, just like developing inner control on administration level from shareholders and the board of directors in order to deal with the problems of operating companies.In detail, we should try to minimize the percent of state-owned share and increase the number of shareholders on shareholders' class, to consider the separation of director and usual manager, establish the committee and independent director on directors' class to settle the problem like "inner person control" in our enterprise management.