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The Corporate Governance and the internal control reform and research up

Author: WuZhenZuoˇˇChenJiongCai From: www.yourpaper.net Posted: 2009-05-26 15:53:01 Read:
[Abstract] this article First of all, to clarify the internal control and the the relationship between of the corporate governance structure is a close one, in while the of the accounting control is the the top priority of of the internal control system; in turn stressed that the and improve the internal accounting If an entity recognizes financial assets control access on the the the impact of of the corporate governance framework is; followed by to explore the China's internal to control the status quo and analyze the the main problems of the it its existence; concluded by encouraging the listed companies in China the put forward of internal control report and affirms that the carried out of relevant audit it is feasible to and must be of the.
[Key words] corporate governance; internal control reform; internal control audit

First, the the internal control with the company governance the relationship between

At the after the occurrence of of the with the United States Financial scandal, In addition to a corporate governance is available outside the the, the internal control is also caused a the Concerned about the of the the investors and the government of the. In the "the Sarbanes-Oxley - the Bill of Oaks to" on Information at its the first-404, in for to perfect the the internal control and its evaluation system of the listed companies to make has been stipulated. As bill requires that in the Listing management of the Company in its annual report the validity of the Company's internal control and its implementation of the to make report, in the this on the basis of, auditors need to of the internal control be evaluated.
In fact,, the internal Control and Corporate governance structure is the inextricably linked. The internal control reflect the the relationship between the the the The management of the internal is to monitor the system with the the institutional environment. Is only in the sound corporate governance environment, the a good internal control system in order to truly to play a role, the operating efficiency and effect of of the improve the enterprise's, and to strengthen the the the the authenticity of the disclosed by the information. The the the validity of of the governance structure and internal control is proportional to the the function of of, With the the constant improvement of of the governance structure, the internal control functions will can be improved.
The The internal accounting control is the part of of the internal control, Its main objective is to reduce the the false accounting information, the protection the safety and integrity of the assets, the its basic objective is to to to ensure the the realization of of the corporate objectives; the and the while the corporate governance of the goal is to ensure enterprise running on the right track on the, to prevent the the the interests of of the director, manager and and other an agent damages the shareholders'. The a sound corporate governance is to the Guarantee for the enterprise attainment of the objective, only to achieve corporate objectives, the Shareholders as a wealth maximization can be achieved.

Second, the and improve the internal accounting controls on the the the the impact of of the corporate governance framework is

(A) it has conducive to resolving the High Concentration of Shareholding and the the problem of of the absence of owners
The owner of the of the enterprise total hope that the be able to objective evaluation of the the enterprise's financial position and operating results, can at any time Service enterprise operators was entrusted with the responsibility of the in the discharge of its by the Superintendent in the situation, and and you want to that the enterprise operators be able to take is conducive to the the accounting policies of the the the interests of of the the owner of the's own. The shareholders 'General Assembly is the the highest authority of of the enterprise, owned in a some of the of on the significant matters that of the right to control, but in of in fact shareholders meeting of the Members, meetings of and the Board often control by the largest shareholder of, a large number of shareholders of the small and medium-sized is difficult to through Shareholders' the General Assembly, or the board of directors to to participate in the control of the business.
Sound system of internal accounting controls include: financial planning control, to authorize the approval of to control, the separation control of the incompatible duties, the control of the comprehensive budget, protection of property control, the control of the internal audit, the contents of the internal reporting control, etc.. Of these internal control measures to implement the not only to protect the the the the vital interests of of enterprise owner of the, but also allows the a large number of small and medium-sized investors through the of external provided by of enterprises accounting information understand the their business situation to of the enterprise, select the buying and selling stocks or other action to phase-out of malicious-encroach on some Small the interests of shareholders of the the indirectly, to control of the Company, the implementation of on the company's.
(B) they have conducive to the Board of Directors the exercise of rights of control
In the the under the the the case of separation by the the The ownership of enterprises with the the the right to operate, the the Board of Directors accept the the the commissioned by of of the the shareholders' meeting, the exercise of the on the company's the right to control and decision-making the right to. The integrity, of the the Board of Directors to the shareholders of the in addition to the performance in the on the company operation and development of to make the right decision-making, to achieve the to maximize the of the results of operations, is also reflected in the of the economic information of the the credibility of a to the shareholders report present a true on a regular basis, complete,. The the realization of of more than goal must rely on the standardized and highly efficient internal accounting controls system, building a on of the tax was recorded with the corresponding accounting quality of the information security system. This protection system include the various budgets the the preparation of and monitoring system in of, the system of the the authorized to operate and the examination and approval, the System of accounting Accounts (SNA), risk assessment system, sound performance evaluation system, financial reporting system and internal audit system and and so on on. Can be said that that the, internal accounting controls is the the of the important measures of the the Board shall exercise the right to.
(C) it has conducive to the the Supervisory Committee of the Company the exercise of the the supervision and the right to

The Board of Supervisors is the the organ of the supervision of of the company and, The Its main functions are to on the company's production and business activities to conduct business supervision and and financial oversight, but does not participate the the the decision-making and management of of the enterprise's business. The Although the The Supervisory Board is directly on the will be responsible for to shareholders, but due to the the actual situation of of the its members of the of which form the, with the within the Company which reports to the Board of Directors and, the the supervision of of the a member of the manager layer is difficult to-earth manner. Moreover, the its can not directly involved in the the the the decision-making and management of of the the company's business, Therefore a good deal of whatever the supervision of of the enterprise business and financial also has been constrained. Sound and effective internal accounting controls the so that to of supervision afterwards or becomes a supervision in the the ex ante and the things. The the construction of of the accounting control system adhere to the legality, validity, comprehensiveness, and the principle of independence, internal control system itself embodies to a great extent the spirit of the the concept of of mutual checks and balances, is the an effective mechanism for of the the internal oversight of the of the an enterprise-, is the the entire supervision, including the the, including the supervision of of the board of supervisors, system, an important an integral part of the of.
(D) it has conducive to safeguard the the the the legitimate rights and rights and interests of of the creditors, the internal staff and workers and suppliers, etc. the interests of the relationship between square
In the varying degrees, on the the, the the relevant parties of the the interests of the creditors, suppliers, the internal staff and workers and customers, etc. are involved in the corporate governance. These stakeholder In the in the the the process of of participate in corporate governance, are can not leave the the on Information Support of the accounting systems. The all the interests of-related parties can be according to the true, reliable accounting information, on the the business situation of enterprises and development prospects. The to make will analysis and judgment, and and takes a pre-set action accordingly. Of the measures.
To sum up, the a good's internal accounting control there are conducive to the of the perfection of of the corporate governance structure, both be able to to the formation of the of stakeholders on the the the system of the the monitoring and constraints of the the different degrees of of the enterprise, at the same time also can effectively solve the internal management of enterprises relaxation, Control 's Weakening and and other issues on. Third, the explore the the status quo of the control of the China internal
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