Optimization Of Internal Control In The Service Section A Of Oil&Gasfleld Company

Internal control is an important part of modern business management, and the basisguarantee of facilitating of production and operation activities. Perfect internal controlsystem would ensure the country’s implementing of the principles,policies, legal norms,business decisions and regulations. Which would also provide reliable financialinformation for the enterprise, protect the safety of property and resources from the risk.Since December2008,the section A, which give service to oil&gasfield company,have developed the construction of internal control system. It already established aninternal control system and achieved an effective operation in4years, whileexperiencing a effective practice and exploration, under the actively cooperate andstrong support with the various units and departments.With the further developing ofmarketization process and enterprise competition, the extent and depth of internalcontrol in section A kept expanding. It was necessary to study the optimization ofinternal control, for enhancing the competitive capacity, creating the first-class servicesection of oil&gasfield company. As a result, the Research, entitled Study onOptimization of internal control in the service section A of oil&gasfield company,possessed both the theoretical and practical significance.Based on the theory of enterprise’s internal control,the problem was figured out andsolved in this artical.As a conclusion, it was studied in three aspects: First, Introducinginternal control’s basic concept and target, with involving the internal control’s basicprinciple, in combination with section A’s operating characteristics, to search out thetarget orientation. Second, analysising section A’s main problems and reasons of internalcontrol, according to the COSO framework’s5aspects, such as control environment,risk assessment, control activities, information communication, and supervision. Thatthe most important aspects are the internal control environment, internal controlexecution, and internal control supervision. The last one, suggesting optimizatedscheme to solve the problem of section A’s internal control, according to its owncharacteristics. Given the circumstances, the specific measures to optimize the internal control of section A is as follows:1. Strengthen the internal environment construction;2.give weight to risk assessment and response;3. Enhance the control activities, improvethe enterprise internal control execution;4. Communicate the information effectively;5.Reinforce enterprise’s control and supervision.In this artical, the internal control theory was applied in section A’s businessactivities, which deppen the theoretical understanding, provided the actual plans topractical work. It improved the thought of practicing corporate strategic taget,promoting the intensive development, and raising the economic benefits. It alsoprovided the reference and guide to further development of internal control managementfor service section of oil&gasfield company which have the same business nature.