The Study On COSO Interal Control Framework System In Petrochina Lanzhou Petrochemical Company

Lanzhou Petrochemical Company is a large-scale and state-owned business enterprise which mainly engaged in the oil refining and chemical engineering product. It is affiliated to Petro China company. its N stock has already been listed on the stock market in New York in the United States, Owning to condering its management modernization and strategetic reasons, we are crying out for establishing a set of scientic and perfect internal control system .The internal control of modern business enterprise is a important component of the enterprise's control activity. it consists of is the management layer and policies and procedures designed and implemented by other personnels. So it is significant to set up a scientific and efficient internal control system for a company to imporve its management and efficiency.This paper firstly analyzes the deficiencies of internal control s of Lanzhou Petrochemical Company ,and by recalling development of the theories of the internal control, this paper point out the necessity of establishing the internal control system by using the COSO framework, in this foundation, it analyzes and designs the full construction of the internal control established by using the COSO frameworkThen it make use of the COSO framework to establish the internal control system of Lanzhou Petrochemical Company in these aspects such as environmental control, the risk valuation , activity control, information and communication,and supervise and so on. Finally it analyzes the characteristics of internal control system of the COSO framework and predits its propects.Through The research in internal control system of Lanzhou Petrochemical Company by using COSO framework, this paper explorates and summarizes the practical application of the internal control system of the COSO framework in Chinese enterprises,especially in power checks and balances,risk control,overall budget management,the fitness of ERP management system. It will not only exert positive effects on the establishment of the modern enterprise system,the transformation of the management system,the standardized administration,and risk aversion, but also provide some referential definite cases and experience in choice, establishment and internal control for some enterprises.