Chinese Oil The Hunan Sales Branch System Of Internal Control Study

The Sales Subsidiary of PetroChina Company Limited in Hunan province (Petro-Hunan), which is the wholly-owned subsidiary of PetroChina listed on the US and HK stock markets, engages in selling product oil. According to national and listed state's regulation, as well as the increasing competition in & abroad, to enhance internal control of Petro-Hunan, to improve the management level, to introduce new management principles, to build environmental adaptive internal controlsystem, is not only the main content of core competitive capability improvement, but also has great contribution to the reality of integrated strategy target.Firstly the paper both explained the background and meanings of implementing internal control system, and reviewed related references at home and abroad, which ascertained the framework and methodology. Then it defined the factors and connotations of internal control and analyzed influence on Petro-Hunan of related management theories and Sarbanes-Oxley. Also it analyzed the necessity of internal control system of PetroHunan on the aspects of competition, development tendency and integrated competitiveness of industry. On the basis of above parts and PetroHunan, the thesis designed the specific executive scheme in the direction of COSO Control Framework, consisting of principles, objectives, guiding ideology, structure, function model of subsystems and safeguard mechanism from the aspects of environmental control, risk assessment, control activities, information & communication and monitoring. Finally, base on the operation status of implementing internal control in Petro-Hunan, and research on the valuation of effect system, it presented main content, program, procedure and standard. The experience and implications obtained from Petro-Hunan can be referred by other companies.