Research On Internal Control Of Production And Inventory Cycle For Subsidiary Of XA Sinopec

In the context of rapid economic growth and globalization tendency of our current society, internal control has already become the core power of entrepreneurial development and competition as an important method to manage entities now. XA Petrochemical Company’s Production and Inventory Cycle, with serve as key parts in company management and operation, are directly related to the existence and sustainable development of companies, and the effective running of which contributes to identifying risks, reducing fraud, lowering costs and improving efficiency.The article considers XA Petrochemical Corporation as the subject of the study, starting study in the area of current situation of the production and inventory cycle. During study, the COSO risk management framework is regarded as the basis, and many kinds of methods are used to collect data, which include case study, document study, observing and inquiring, questionnaires, dealing with the deficiencies in XA Petrochemical Corporation through internal environment, risk appraisal, control activities, information and communication, and monitoring. The five-element-core internal control management framework and production inventory cycle internal control roles of XA Petrochemical Corporation are first introduced in this paper. Theoretically based on the analysis of questionnaire results, the problem in Production and Inventory Cycle’s internal control is analysed in terms of internal control, a series of suggestion is come up with :to improve the internal control environment, enhance the risk appraisal and responding mechanism, imply the control activities efficiency, strengthen the management of information and communication, bring the role of monitoring into play, etc.