Study Of Internal Audit Legal Issues

Nowadays the corporate governance is to be subjected to extensive concern,people realize, only building up a set of integrity of manage system, it canresolve to embezzle thoroughly, in this system, the internal audit of the companyis essential to constitute the part. Internal audit of company and corporategovernance have close contact, both have different characteristic and functions inthe process of corporate governance, since distinct and united. Sound corporategovernance is to urge internal audit circulate effectively. Under the environmentof corporate governance, whether it can move effectively, has the every bigrelationship with the corporate governance consummates, perfect corporategovernance can insure internal audit play its role effectively; in the meeantime,internal audit also reacts corporate governance. Also it is the solution of currentcorporate governance controls the "question takes the insider" as a core of a validmeans of many problems. Practice proves the internal audit performs feats in thesuccessful progress of corporate governance, falling of the corporate governanceto accompany with necessarily. So for the perfect corporate governance, it'snecessary to develop the important function of internal audit. Coming in sight ofthe important function of the internal audit, what's the present state of the internalaudit of our country's company? From the trend of recent years, the workingtalent of modern and internal audit has already changed. For a long time, theinternal audit has faced with structure antinomy, it hard to integrate to acompany's system of corporate governance, neglecting the function and positionof internal audit in macro view of corporate governance; it is also internal audithard get well exertive of system source. The text begins with the relationship ofcompany's internal audit and corporate governance, passing to announce the lawproblem of internal audit, considering should build up sound internal audit incorporate governance system, and putting forward the law of internal auditshould be set up. The full text is divided into four parts:PartⅠ—This part passes to discuss the concept, development, presentcondition of internal audit and connotation of corporate governance, find outinternal audit and corporate governance in consistency of theories basal likeness and target, elaborate both it the relation of thus, make the theories foundation forthe continuation.PartⅡ—This part discusses through three big aspects. First it's analyzeinternal audit carrying out with inner part control, then it explains the internalaudit is the important part of the corporate governance from working talents andfunctions of internal audit.PartⅢ—This part manages to discuss the blemish of corporategovernance and leads to existent the law problem of the internal audit, so it musthave to jump out the traditional audit scope, extending to the level of corporategovernance. This part points out the problems firstly, based on preceding contextthat the functions of the internal audit then derive the problems of it. The articlemanages to discuss the existent law problem of internal audit from the view ofconstitution of organization and the personnel's absurdity, position not explicit,the law not sound, independence bad, and split into the relation of the internalaudit and corporate governancePartⅣ—The law construction of the internal audit of our country.Thispart points out several suggestions aiming at problems putting forward at upperpart. Internal audit independence should be built up firstly; it puts forward thestipulation mechanism which should be set up with the "the supervisor and auditcommittee" based on the circumstance of our country. Secondly, it comes up theperfect internal audit from the level of consummating independent boarddirector's system. Then it points out economic environment should be improvedand the related internal audit law should be coordinated and integrated, raisingthe position of internal audit. At last, it is to ensure opinions and suggestions ofinternal audit to be carried out.