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Corporate Governance-A New Inspect of Internal Control

Author: LiGuo
Tutor: ZhangQingChang
School: Sichuan University
Course: Accounting
Keywords: Internal Control Market mechanisms Governance controls Corporate Governance
CLC: F275
Type: Master's thesis
Year: 2006
Downloads: 798
Quote: 0
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Abstract


Since 2001, the United States of Enron, WorldCom, Xerox and Merck, a large number of well-known international company because of the financial and accounting scandals caused turmoil in the U.S. capital markets; domestic \electronic \In a process of reflection on the domestic and foreign accounting fraud case, the eyes of the theorists and practitioners invariably focus on the internal control system, and aware of the defects of the internal control system, invalid and does not perform evoked above cases One of the key factors. Sacked frenzy \However, the theoretical study of the profession of internal control is basically also did not rise to the level of governance control, the sector of this theory in practice the differences is the starting point of our study. Lack of awareness of the inherent defects of the internal control practitioners is one of the reasons leading to the above differences; another reason is the special position on the principal investigator of the internal control theory, internal development of control theory was mainly due to the auditing profession to promote, audit sector proposed the concept of internal control services in their own interests, so theorists internal control concepts there are also some limitations. Internal control in terms of nature, a concept of the corresponding control mechanism and the external market, internal control and market control, is an implementation of governance control mechanism, the governance of Control, we can corporate governance model control for the external market as represented by the Anglo-American model of governance, as well as Japan, Germany, on behalf of the internal control governance model. Based on their respective market characteristics, these two modes can better achieve the management, supervision and encouragement. Governance control way choice, depending on each country's particular market environment, China's special characteristics of the market, the market mechanism and internal control mechanisms are difficult to play its due role in the governance control in our country is limited. It now appears, the corporate governance reform in China is mainly with reference to the Anglo-American model, governance control more

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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management
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