Based on Corporate Governance Construction of internal accounting control system

[Abstract] corporate governance, internal accounting controls under the Building Management System as an important component of its sound and perfect directly related to the ability of the business in the increasingly fierce competitive environment, survival and development, and directly affects the quality of business operations and performance. In this paper, the concept of corporate governance and internal accounting control theory, corporate governance and the relevance of internal accounting controls, and the building of corporate governance based on internal accounting control system proposed vision.

[Keywords:] corporate governance; internal accounting control; System

First, the concept of corporate governance

Corporate governance (corporate governance) the term of 80 years in the 20th century officially appear in English literature. Corporate governance issues in the study of basic economic and management already exist in practice, its meaning changes as the century increasingly rich. Company Every attention to governance issues are often against the company fails or the system's response to the crisis. At present, theory and practice basic academic community reached a consensus on the separation of ownership and control, and the resulting agency relationship, the company Control source of the problem. only in the full analysis on the basis of the agency relationship is it possible to coordinate the two sides find a reasonable profit and a series of powers and responsibilities of corporate governance arrangements.

In accordance with the concept of corporate governance, corporate governance is essentially about the company's distribution rights and interests of the arrangements, the core is in the laws, regulations, practices framework, to ensure that its shareholders as the main stakeholders of the company the right to arrange a set of interests, division of responsibility and restraint. The responsibilities, rights and interests of the arrangement is reasonable or not is the corporate performance is one of the most important determinants, such an arrangement that is, governance mechanisms and constraints. corporate governance into internal governance and external governance mechanism. the internal governance mechanism is commonly referred to as corporate governance. the core of corporate governance is the governance structure within the company and its distribution of power settings. External Corporate Governance generally refers to the stock market, the market manager, product market and banks, institutional investors and other external forces act on the supervision of corporate management. external governance is the internal governance of the supplement, and its role is to make the evaluation by outside business activities, forcing the company's management discipline and self-control.


Second, the internal accounting control theory

20th century, 40 years to 70 years, the development of the internal control system of internal control into the stage. Thoughts that the internal control system of internal control should be divided into internal accounting control and internal management control of two parts:
(A) of the internal accounting control
Accounting control, including (without limitation) organizational planning and the protection of property and the reliability of financial statements for the relevant procedures and records. Accounting controls designed to ensure that: According to management's general or specific authorization activities; economic business records must be accordance with generally accepted accounting principles or other relevant standards in preparing the financial statements; only authorized to close by the management of assets; book to set out the assets and real assets at reasonable intervals exist reconciliation of any differences that occur take appropriate measures.

(B) internal management control
Management control, including (without limitation) organizational and management planning and economic decision-making process related to business licensing procedures and records. This authorization is to complete the objectives of the organization with responsibilities directly related to a management function, but also the establishment of economic activities the starting point of the internal accounting control.

This phase began with the internal control of internal accounting control and internal management control division, mainly through the formation and implementation of a set of internal control system to implement control. The internal control objectives in addition to the security of property, conservation organizations, but also including the promotion of the accounting the reliability of information, improve operational efficiency and compliance with established management approach.

For internal accounting controls, from different angles have different understanding, but is generally believed that the internal control of internal accounting control is the important content and means.

Internal accounting control has been in the modern enterprise has been increasingly widely used, it has been able to have universal value, because it has a scientific basis. Internal accounting control in system theory, control theory, information theory, organization On the basis of the structure built on the theories, it is not only a scientific and reasonable management tool, and based on a basic form of economic control to run.


Third, corporate governance and the relevance of internal accounting control

Corporate governance and internal accounting control of the relationship is inseparable. Corporate governance is to promote the effective operation of internal accounting controls to ensure the functioning of the internal control of the premise and basis is the implementation of the system of internal accounting control environment; and internal accounting control in corporate governance play the role of internal management control system is conducive to achieving the company trustee company management objectives, to complete a means of fiduciary duty. sound corporate governance system of internal accounting control is conducive to the establishment and implementation; sound internal accounting control mechanism will also promote the improvement of corporate governance and the establishment of modern enterprise system, strengthen the company's internal accounting control has become an important means of corporate governance.

(A) corporate governance of internal accounting control environment and the premise
Corporate governance structure is to promote the effective operation of internal accounting controls to ensure the functioning of the internal accounting controls and basic premise, is the implementation of the system of internal accounting control environment. Internal accounting control in a large set of corporate governance environment, corporate governance, internal accounting control system environment. the effectiveness of internal accounting controls to run, and the adequacy of corporate governance has a lot. Only in sound corporate governance environment, a sound system of internal accounting controls can play its role, improve business efficiency and effectiveness, and enhance the authenticity of information disclosure; the other hand, if there is no scientific and effective corporate governance structure, the company must lack an effective monitoring mechanism, no matter how well designed, effective internal accounting control system will be a mere formality and difficult to achieve given results. corporate governance is the organization of protection of internal accounting controls, with the power configuration, incentive functions and coordinating function, agents can solve the moral hazard and adverse selection problems; to standardize and restrain the behavior of agents and the opportunity to overcome the tendency of agents; to incentive and the behavior of the board and senior management, thus affecting the efficiency of internal accounting controls.

(B) the internal accounting control is the protection of corporate governance run
Internal accounting controls to play in corporate governance is the role of internal management control system, good internal accounting control is to improve the corporate governance structure of an important guarantee. As the majority control of the company concentrated in the hands of managers, while shareholders have in the funds provider status. In this case, the internal accounting control objectives to be achieved an important guarantee of corporate governance. Corporate governance is the core of the separation of powers and checks and balances, effective internal accounting control is the normal operation of the protection of corporate governance, there is no perfect internal accounting controls can not be good corporate governance.

(C) to make up for internal accounting control is an effective tool for corporate governance deficiencies
Internal control is to improve the corporate governance structure of the important part. Corporate governance structure is the basic internal accounting control environment. Corporate governance structure is conducive to a sound system of internal controls, internal control structure is conducive to the improvement of corporate governance. Improve corporate governance is a long-term and arduous task, not one go in a short time, so unreasonable in the present case of corporate governance, appears to contain a variety of issues on the need to strengthen internal accounting controls, good internal accounting control is correct stakeholders dealing with business relationships, an important guarantee for improving corporate governance. sound and effective internal accounting control is conducive to resolving the power of owners and operators of checks and balances; be conducive to safeguarding the interests of minority shareholders to address the high concentration and the absence of owners equity problems brought about; is conducive to the effective exercise of control over the board to resolve the problem; conducive to resolving the creditors, employees, customers and suppliers and other stakeholders in the interests of the security issues. It can be said to make up for internal accounting control is an effective tool for corporate governance deficiencies.

Sound corporate governance is the effective operation of internal accounting controls to ensure that. Internal accounting control in a large set of corporate governance environment, corporate governance is the system of internal accounting control environment. Whether the effective operation of internal accounting controls, and corporate governance is greatly improve the contact. internal corporate governance can also be said to be an aspect of internal control. only in sound corporate governance environment, a sound system of internal accounting controls can play its role, improve business efficiency and effectiveness and to enhance the authenticity of information disclosure.

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(A) the internal accounting control system has been developed as measures to improve corporate governance
Internal accounting controls should be based on sound corporate governance perspective, the repositioning of internal accounting controls, not only in the internal accounting control based on the amendments. The development of internal accounting control is inseparable from the promotion of corporate governance, and should therefore be placed on internal accounting control within the framework of corporate governance, corporate governance from the perspective of great importance to improve the internal accounting control.

(B) the establishment of internal accounting control objectives
Should go beyond the current system-based audit of the narrow field of vision, the target located in the corporate governance level, while maintaining the continuity and development of a forward-looking goals. According to the principles of system theory, all the elements of the system in order to achieve overall objectives are work, so the internal accounting control as a corporate control mechanism of the economic system, its goals must be subordinate to the overall business objectives. internal accounting controls exist in the activities of production and operation, is an important business management component can be considered only from the overall interests of enterprises, the overall objective to establish a direct correlation with the enterprise's internal accounting control objectives, it has to strengthen and improve the driving force behind the internal accounting control. business practice by the general meeting of shareholders (Authority), the Board (decision-making body ), managers (executive body) three control business operations. Therefore, internal accounting control objectives should be located in the corporate governance level, so as to fully take into account the overall interests of the enterprise.

(C) the scope of internal accounting controls not only from a business perspective, corporate governance should be increased to a level
In short, from the perspective of corporate governance, internal accounting control, not only allows people to more clearly grasp the internal accounting control, also help bring into full play internal accounting controls in corporate governance role.

Internal control should be a systematic project, is a level of corporate governance structure, internal control, internal management and internal control of financial and accounting aspects, internal business of the appropriate level of control all aspects of interrelated constraints common overall organic composition of the internal control system. Based on Corporate Governance of senior management (shareholders, directors, managers) to control the governance at the level of internal accounting controls, internal accounting controls of the entire superstructure, a direct impact on control of the lower management company. traditional internal accounting controls, accounting information is to ensure the authenticity and reliability of financial reporting and compliance with laws that target a number of specific control procedures and principles, is associated with the company business process ; on governance at the level of internal accounting controls, mainly refers to the corporate governance point of view, how to shareholders, directors, supervisors and managers to control, is a mechanism, but also an organizational arrangement. based on the company's internal accounting control is the management essence, is the key to the internal accounting control is the internal accounting control for specific services. left the corporate governance of internal accounting controls, but only the internal accounting control can only be less effective. only the first level, from management to consider improving the internal accounting control This created an internal accounting control is the multiplier. This makes the substance of the internal accounting control is not a manual books, documents and simple combination of the system, but the organic composition of the internal accounting system, and the company employees in order to ensure Legal Operation, control of financial fraud, improve operational efficiency and effectiveness of the contractual arrangements.


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