Internal Control Factors And Evaluation Of YN Petroleum Company

With the globalization of economy,the risks that confronts enterprises have been shifted from singular domestic market risk to global market risks.Its accounting authenticity has been under the supervision of global investors and the industry.As a listed company,it must establish a set of effective self-restrictive mechanism to avoid any risk,which is the internal control mechanism that currently attracts the attention of the government and the academic community.Practical experience and literature review have showed that internal control is an important regulatory mechanism that can enhance the operating efficiency of an enterprise.The quality of internal control has a positive correlation with the profitability of the enterprise.PetroChina YN Petroleum Company(YN Company)is the only wholly-owned subsidiary in Yunnan of China National Petroleum Corporation(CNPC).It initiates the work of internal control system since March,2004.YN Company has received the acceptance tests three times from its headquarter and over ten times external audit,all of which have a favorable outcome.With the increase of the number of branch companies in prefectures in Yunnan of YN Company(15 branches so far),YN Companyl has much more difficulty in administrating.Internal control system has not been fully implemented in the 15 branches,with outstanding system bugs which appears in a negative trend,it also suffers employee loss.In this term,this paper firstly expounds the competition environment of petroleum in China and the fundamental demands of domestic development,and basic background of the establishment of internal control system of YN Company.Existing problems in 15 branches and difficulties in company administration in its development are analyzed.Based on literature review at home and abroad,we make a detailed survey of the internal control status quo to make the questionnaire,and investigate the underlying problem and reason of the overall situation of internal control.Delphi method and rough analytical hierarchy process are adopted to analyze the key factors of YN Company.The 15 branch companies are taken as the example to illustrate the status quo of internal control,which lays the foundation of subsequent optimization of internal control system.The theoretical and practical significance of the above research contents are as follows.