Study On Internal Control Management Of PNK Oil Company

Internal control is implemented by the board of directors，management and the entire staff of the company，it is all the measuresand methods which are taken to enhance operation efficiency, to ensurethe reliability of financial reports as well as to comply with applicablelaws and regulations. In the development of modern enterprises, there isno doubt that implementing effective internal control holds greatsignificance for enterprises to maintain a competitive advantage in thefierce competition and continue to develop and grow. PNK company is alisted company which implements internal control earlier in our countryand an internal control system which has been at the center of riskprecaution and control of fraud, it has carried on the beneficialexploration at the aspects of preventing financial fraud and carrying out supervision and inspection regularly. However, with the expanding ofenterprises, there are important bottlenecks restricting the development ofthe company, including that internal control system is still inadequate, theperformance of internal control is worse. In view of this, this study isdeeply and systematically to analyze the problems existing in thecompany internal control, so that to propose several suggestionsaccordingly. This will not only have a positive effect in the company’sown development, but also provide the important reference for otherenterprises to establish and perfect the internal control system. This papercontents include as following:First, current management situation of PNK company’s internalcontrol. The paper introduces the development conditions of the companyfrom the growth of company, the modernization reform of organizationalstructure, the formation of unique operation philosophy and theimplemention of enterprise talent project, and introduces thedevelopment history and developing situation by the way of historical analysis strongly.Second, the problems and causes existing in the internal control ofPNK company. This paper considers the actual situation of the companyto deeply analyze the present main problem of the internal control systemfrom four aspects of financial internal control system, organizationalstructure of the company internal control, results of risk control programexecution and information system. It further points out the main cause ofthe problems in the company internal control lies in: less awareness ofthe internal control; no suitable internal control environment; no effectiveinternal control evaluation.Third, improvement goals and principles of PNK company’s internalcontrol management. Based on introducing current situation andanalyzing the problems, this paper learns from the classical theory ofinternal control to propose the improvement goals of PNK company’sinternal control management. It mainly includes the establishment of themature internal control system, the establishment of long-term internal control evaluation mechanism and the improvement of the ability ofenterprise risk management. Furthermore, the improvement principles ofPNK company’s internal control management are put forward asfollowed: principles of measurement of the costs and benefits, principlesof comprehensive plan as a whole, principles of checks and balances.Fourth, suggestions of PNK company strengthening internal controlmanagement. This analysis which is based on the positive analysis of theactual situation and strategic needs of the PNK proposes some targetedsuggestions, mainly includes: improving the organization mechanisms ofcompany internal control, improving the ability of controlling enterprisefinancial risk, building the inter control appraisal system and propellingthe construction of information system.