On the corporate governance and internal accounting control

[Paper Keywords] corporate governance structure, internal accounting controls, checks and balances
[Abstract] corporate governance is to ensure that business conducted scientific decision-making and design of institutional arrangements, arrangement and design of this system is itself a collection of structures and mechanisms of organic, internal accounting controls under this arrangement and design of important internal control measures. Therefore, internal accounting control and corporate governance are inextricably linked.


In a separation of ownership and management rights for the main features of the modern enterprise, the owners and managers, while having among the principal-agent relationship, but the existence of objective asymmetry and information asymmetry, so the actual work will appear in the "internal control. "It is" internal control "exists, resulting in a corporate governance structure.

Sound corporate governance is to enhance the competitiveness of an important guarantee for the company, and good internal accounting control is also beneficial to the improvement of corporate governance, can effectively solve the problem of some listed companies, therefore, corporate governance and internal accounting control is a close relationship between inseparable.

I. Overview of Corporate Governance
Corporate governance structure is a contact and regulate the shareholders (property owner), the Board, senior management rights and obligations of distribution, and employment related to this election, and supervision of the institutional framework and other issues. The core of corporate governance, ownership and operation in the conditions of separation of powers, due to the interests of owners and managers produced inconsistent principal-agent relationship. Corporate Governance goal is to reduce agency costs, so the owner does not interfere with daily operations, while managers can ensure that the shareholders interests and profit maximization as the goal.

China's corporate governance structure is the use of "separation of powers" system, that decision-making, management and oversight powers belong to the shareholders, board of directors or executive directors, board of supervisors. Through the power of checks and balances, so that the three organs of their duties, but also mutual restraint to ensure the smooth operation of the company.

Second, an overview of the internal accounting control
Internal accounting control is an important component of internal control part of the corporate board of directors and managers to ensure the safety and integrity of corporate assets and improve the quality of accounting information to achieve management objectives and establish a series of measures and procedures to implement, it is mainly the importance of the unit important part of economic activity and to monitor the process. internal accounting control objectives defined as, for the information users provide true and reliable accounting information, accounting information systems and ensure the quality and smooth operation.

Internal accounting control structure in corporate governance assume the role of the internal management control, it is beneficial to enterprises management objectives, to complete a means of fiduciary duty. Corporate governance is to promote the effective operation of internal control to ensure the functioning of the internal control the prerequisite and basis for the implementation of aspects of the internal control system. Therefore, corporate governance and internal accounting control are inseparable.

Third, corporate governance and internal accounting control links
(A) corporate governance and internal accounting controls consistent with the ultimate goal.

The aim of the internal accounting control is to reduce false accounting information, protecting the safety and integrity of the assets, the basic goal remains to ensure that business goals and objectives of corporate governance is to ensure that businesses run on the right track, to prevent managers and other agency directors who harm the interests of shareholders, the ultimate goal still is to protect the security and integrity of assets. Therefore, internal accounting controls and corporate governance are unified in the business goals. reposted elsewhere in the Research Papers Download http://www.hi138.com ( b) corporate governance of internal accounting control environment and the premise that it is conducive to a sound system of internal accounting controls.

Internal control is by the governing authorities for the implementation of the objectives of the governance rules and policies established and implemented a series of procedures, internal control systems and corporate governance structure is the control system of internal governance and control of the environment, the internal accounting control is the internal control important part of corporate governance is therefore 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, on the contrary, 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 problem, you can standardize and restrain the behavior of agents and agents the opportunity to overcome the tendency can be incentive and the behavior of the board and senior management, thus affecting the efficiency of internal accounting controls.


(C) of the internal accounting control as an important internal control measures is to improve the corporate governance structure of the specific policies and procedures, which is conducive to the improvement of corporate governance.

Internal accounting controls to play in corporate governance is the role of internal management control system, good internal accounting controls help enterprises improve corporate governance structure, can effectively solve some relaxation of internal management, control, weakening and corruption. Since majority control of the company concentrated in the hands of managers, and shareholders who have been in a position to provide funds, 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, sound internal accounting control is not impossible to have good corporate governance.

Improve corporate governance is a long 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, correctly handle the relationship between business stakeholders, an important guarantee for improving corporate governance, corporate governance structure is divided into external governance structure and internal governance structure. corporate governance structure by the external capital markets, finance market, the manager of the market and other factors, internal governance structure of the rights of all stakeholders affected by the impact of checks and balances. For example, the shareholders meeting, board of supervisors, creditors, unions and other stakeholders on behalf of the authority, the power balance between them constitute an important part of corporate governance. good internal accounting control is an important means of these checks and balances. sound and effective internal accounting control is conducive to resolving the power of owners and operators of checks and balances, is conducive to safeguarding the interests of minority shareholders to address the equity and the absence of owners with a high concentration of to the problem, is conducive to the effective exercise of control over the board to resolve the problem, is conducive to resolving 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. transfected affixed to the Research Papers Download http://www.hi138.com