The Research On Improving The Internal Control System Of B Oil Company

The topic of internal control is of great concern either in China or abroad. All inall, the framework of internal control has experienced five stages’ developments:internal check system, internal control system, internal control structure, integratedframework of internal control and enterprise risk management framework. Since20thcentury, experts all over the world have done a lot of theoretical and empirical study ininternal control. Among them, COSO report of United States represents the latestdevelopment. Along with the social and economic development, the internal controltheory development is now experiencing a new leap.China has become the second largest country in the world that consumes andproduces energy nowadays. Petroleum industry is an important industry that gives helpto economic development and improvement of people standard of living. Internalcontrol system of petroleum enterprise should not be ignored because it has closerelationship with national economy and people’s livelihood. Chinese petroleumenterprises went through several reforms, however, they still have many problems ininternal control such as defective system and functions, unclear responsibility and lackof supervision. The improvement of internal control system is inevitable due toaccelerating of oil-marking process.The Specificity of petroleum energy makes it difficult to build internal controlsystem and implement it. According to characteristics of petroleum enterprises, basedon internal control theory, this thesis emphasizes on the internal control of a realpetroleum enterprise (B enterprise), and analyzes its problems of internal control.Learning from other companies’ experience, this thesis gives some suggestions aboutimprovement of B enterprise’s internal control (risk management especially).This thesis contains4chapters，chapter1and chapter2introduce the internalcontrol basic theory and development, chapter3analysis the problem of B enterpriseinternal control and the reason of it, chapter4gives suggestions on how to improve Benterprise internal control system.