The argument to the relationship between internal control and internal audit in the enterprise
Abstract
With the new introduction of Accounting and Auditing Standards, re-examining some concepts which are closely related to them is necessary, the accounting staff should understand the changes direction of national policy under the new guidance of some updated methods of operation, and understand the importance of internal control and internal audit in the management of modern enterprises. Internal control is built to ensure the reliability of financial reporting reasonably and the efficiency and effectiveness of production and operation, besides that, in complying with draws and regulations, designing and implementation of policies and procedures by management layer, management and other relevant personnel. It is an effective organizational and operational management for enterprises, as well as an effective guarantee of conducting all kinds of the economy business, and an indispensable tool of effective management in the modern enterprise. Whether the accounting information and other information that provided by economic entities is true and completed depend on whether a standardized system have existed and whether it is implemented effectively. There is a considerable degrade of causal relationship between them. This essay will present the meaning of internal controls and internal audit, and expound that internal audit is an important part of internal control and the inherent demand of corporate governance. Corporate governance renovation will push forward the internal audit, internal audit promote the establishment and implementation of system of internal controls. Interaction between internal controls ande corporate governance efficiency, and constantly improve the corporate governance structure. This essay will advocate modern enterprise management should strengthen internal audit, and promote internal control through promoting internal audit.
Key Words：Internal Audit；Internal Control；Structure of Corporate; Status
