Tarim Oilfield Company Internal Control Audit Applied Research

PetroChina is a company which goes on the market in US that it must observe the related stipulation of 404 provisions from "Sarbanes - the Oxley Bill" (to be called the Sa Au Bill) about a public company that should establish the internal control system. Approved by board of directors of PetroChina In August 2003, PetroChina started to establish its internal control system. Hence, Tarim oilfield company also carried out this project according to the requirment of PetroChina. In September 2005, audit department of CNPC worked out the stipulation on how to audit internal control system.This paper is closely written around the internal control and audit factual situation of Tarim oilfield company (hereafter refer to as oilfield company) through the analysis on the present situation of oilfield company's internal control system and its audit system. According to the requirment from PetroChina and CNPC, the author, in this paper, designs a set of audit procedures and measurements focusing on the internal control system of oilfield company at the foundation of the company's original audit system and takes a discussion on strengthen internal control audit of oilfield company.