Research On The Construction Of The Internal Control System Of Overseas Oil Business

Internal control is a certain product of management modernization, and an indispensablepart of all the economic organizations'activity. Internal control exits in all the aspects ofbusiness management. Business economic activities and management needs relevant internalcontrol very much. From 1990s, Chinese oil industry began to develop overseas investmentand exploit overseas oil resources. For their decades'efforts, overseas oil business has made agreat contribution to Chinese national economy. However, so far our oil corporations haven'tconstructed the internal control system of overseas oil business which aims at thecharacteristics of overseas oil business. Lacking of internal control system is a seriouspotential crisis.This article makes the theory of internal control, corporate governance and riskmanagement as its theoretic base. Afterwards, it summarizes the development of overseas oilbusiness and analyzes the characteristics of overseas oil business. After the analysis of theactuality and problems of its internal control, we educe that it is necessary and feasible toconstruct the internal control system which is according to the characteristics and requests ofoverseas oil business. So the article provides the optimized project including the objectives,principles and blue print. At last, to make sure the optimized project can be brought into effect,the article also puts forward five mechanisms. The article has four parts composed of sixchapters. The first part is Chapter 1, and the second and third chapters belong in the next part.The central part comprises chapter 4 and chapter 5 which put forward the optimized projectand assuring mechanisms. The last part summarizes the conclusions of the article.