Research On Internal Control System Of Daqing Drilling XJ Company

Because of the emergence of accounting information distortion, fraud problem,establishing an effective internal control system is particularly important. The researchshows that the sound internal control system can prevent fraud efficiently, and setting up aninternal system has been gained more and more attention by countries all over the world.With the continuous deepening of China’s socialist market economy, especially after joiningthe WTO, China is accelerating its process to integrate into the world economy. In order tocope with the complicated, intense international competition, and constrain the unstable,unfavorable factors in the economy, to establish and improve internal control system becomean important way to regulate the corporate management and avoid corporate risk. Based onthe related research domestic and abroad, through analysis and comparison of internalcontrol system between China and U.S., this paper aims to recognize the insufficiency ofinternal control system in China, and combine with the basic situation of the corporate inChina to eventually set up a suitable internal control system for corporate in China.This paper demonstrates the background, significance and purpose of the study ofinternal control. Based on the theoretical and practical method, the five elements of COSOinternal control frame are referred as support, and the construction of internal control systemof Daqing Drilling XJ company is used as an example, this paper discusses the main problemof the XJ company’s internal control system in detail and designs a main business process. Inaddition, the paper also establishes an evaluation system for the corporate internal controlsystem, and applies Fuzzy Evaluation Method to evaluate the internal control system of XJcompany comprehensively. At last, in order to keep the internal control system working welland efficiently, the paper proposes the improvement measures for XJ company’s internalcontrol system.