The Association Between Corporate Governance And Internal Control Quality

Internal control can effectively lower the risk of company business,and it is essential to the company long term development.Corporate governance has essential influence on internal control quality.With case study method and comparative analysis method,I took two listed companies' corporate governance and their influence on company internal control quality as the analysis object,and contributed a systematic study of relationship of corporate governance elements and internal control quality.First of all,this paper give a summary of internal control and corporate governance studies domestic and abroad.Then describe agency theory,stewardship theory and stakeholder theory.After elaborating internal control policies in China and US,I gave a theoretical analysis on how the corporate governance influence internal control from three perspectives of corporate governance,which is audit committee,board and CEO.And then I tried to use to cases to prove the relationship between them.This paper contributes to improve the corporate governance structure,develop the supervision of audit committee,improve the independence,diligence and competence of the board,and the duality of CEO.