Study On The System Of The Risk-oriented Internal Control In Oil Companies

The internal control is the product of socio-economic develops to a certain stage, is an important means of modern business management. At present, the internal control theory has become a topic by the Chinese theory and practical, either the Government and regulatory authorities, such as the SASAC, the Commission, the Ministry of Finance and so on, certified public accountants, or business managers, and even on the stock market, their think much of the internal control. In particular, as China's accession to the WTO, it urged that all units establish a management system in accordance with international and gradually requirements, the foundation is to setup a modern system of the internal control.Oil companies hold the lifeline of China's national economy, are related to economic development of China's rise and fall, and internal control are essential to oil companies' survival and development. However, the internal control of Oil Companies in china starts late, after ten years of development, although getting a certain grade, but most of the internal controls in our oil companies are still not perfect, they have some unreasonable situation, such as the distortion to accounting information, increased costs and so on. At the same time, on the weak and the employees recognize errors to the internal control, increasing the risk of the oil companies. Therefore, to enhance the study of the internal control, to establish a science, the application of risk-oriented system of internal control has become a problem needed to address urgently.Risk-oriented internal control as a model of a modern internal control has been widespread application in developed countries. Its significant features and the unique position play an important role on risk assessment and control. Risk-oriented internal control represents the development trend of internal control in modern enterprises, in addition to concerning to the traditional internal control; it concerns more about the effectiveness of risk management mechanism and sound corporate governance structure, and plays an important role in improving their risk management and corporate governance. Risk-oriented internal controls are better than the past, either in terms of the job, or at risk of concept content and services. With the rapid development of China's economy, integrating the risk management into internal controls, that reflects the requirements of their own, has become a kind of an inevitable trend.This article is divided into several parts, the first part of the article introduces the risk-oriented internal controls basic theory; the second part introduces the status and problems in Chinese oil companies; the third part analyzes the cause of the problem on the internal control; the fourth part builds our country's oil companies risk-oriented internal control system; Finally around the risk-based internal control system set up safeguard measures.