Research On Relationship Of Corporate Governance And Internal Control

As many corporations appear ineffective corporate governance and the problem of "internalpeople control" at present, it has great significance for analysis of the relationship betweencorporate governance and internal control. Using the theory of modern economy, management,histological and system, this thesis deeply expounds the relation between corporate governance andinternal control, discloses the problems existing in the interaction of the two and puts forwardsystematic approaches to handle these problems.As an indispensable environment-system of internal control, corporate governance exerts greatinfluence on the construction and smooth operation of internal control. As an important tool ofcorporate governance, internal control improves the efficiency of corporate governance. Therelationship of the two is interactive as they strengthening and affecting each other. Correctlyhandle their relation is of advantage to perfect the foundation and operation of internal control andmaximize corporate-evaluation.Taking the current valid interaction of corporate governance and internal control intoconsideration, measures should be taken to strengthen internal control and efficient corporategovernance. The key measures are as follows: to intensify independency and authority of the boardof directors and supervisors, to strengthen the supervision and guidance of governance layer oninternal control, and to perfect the incentive and constraint mechanism to management layer, todefine and reinforce the internal control of the administrative functions, to optimize internal controlenvironment, to perfect risk assessment and copying strategies, to standardize informationcollection and communication, to truthfully report and disclose the internal control monitoringresults on time.