Overview of the Relationship between Internal Control and Corporate Governance

Abstract

As the global economic crisis deepens, people have a clearer understanding of risks. Since internal control and corporate governance can better control risks in the development of a company, how to properly handle the relationship between internal control and corporate governance has become the focus of research. There are mainly three views on the relationship between the two among scholars’ researches including environmental theory, basic theory and chimerism theory. In the normal operation of a company, as internal control and corporate governance are closely related, people are more inclined to the point of view of chimerism, claiming that the two affect each other and they are inseparable.