Study On Internal Control About Costs Of The Drilling Company X Of Zhongyuan Oilfield

The drilling company X of Zhongyuan oilfield belongs to the oil industry,and its mainbusiness is to provide engineering and technical services for the exploration and developmentof oil and gas,undertaking the drilling of all kinds of oil and gas well and construction ofworkover.In recent years,one hand an unprecedented impact occurred to sector project marketat home and abroad of the petroleum engineering.The other hand,contract pricesreduced,many factors led to the increasing of pressures about controlling drilling cost,andmore and more operation risks and management risks grew with each passing day.So thecompany is required to take all relevant measures for cost reduction and efficiencyincrease.Under the guidance of oilfield,the company has attempte at new approaches to costmanagement,such as single well cost management mode and three-level control mode.Theawareness about cost control of the staffs has greatly enhanced.However,The primary costmanagement problems persist because of the thin cost management theory and the imperfectapplication of cost management methods.For example,status and responsibility is not clearenough,execution in authorizing ratification is not in place,the accuracy of cost budgeting isnot enough,cost control has some vulnerabilities,cost analysis and evaluation are weakened,cost control process is time-consuming and implementation of current cost control process isvery high.Internal control is an advanced management system.Theoretical and practicalresearches on internal control increasingly tend topractice,which emphasising the summaryand the observation of business management practices,and theoretical refinement.So thispaper puts forward study on internal control about costs of the X drilling company,as a newexploration of methods of cost management,and which will benefit its PDCA improvement ofthe overall internal control subsystem from the view of subsystem point.Through the study of literature and the survey of company’s cost practice,the papercombs and optimizes the company’s business processes of cost,then integrates the control flow and two levels of control points corresponding to business processes, studies controlmeasures for each point,and finally puts forword the safeguard measures to promote theimplementation of its internal control about costs.In this paper,Employing the methods ofliterature review, site investigation and case study resolves the problems above.