The Research Of Optimization For The Internal Control Framework In The Process Of International Business Of The GWDC

With the continuous development of social productive forces, such as science and technology, information technology industries with highly progress accelerate the development of global economic integration process, and the risk of enterprises from all countries are gradually increasing. A sound system of internal control system and constraints is one of the methods which measures corporate governance standards of behaviors, especially avoiding risk measures. Internal control has become one of the most effective ways to manage enterprises. In China, compared with western developed countries, internal control theory is started relatively late, but the cognition of the importance and necessity of internal control among the people has been greatly improved. In China, Oil international drilling companies have both traditional state-owned enterprises and the new era of the double characteristics of multinational companies. Taking the Great Wall drilling company as an example, it is given the priority to overseas oil drilling operations, while domestic drilling operations is complementary. Although the projects are spread all over the world, the staffs aren’t centralized. What’s more, geological structure is complicated. At last, there are too many kinds of the applications, etc. All those make the internal control in the international operation of companies hard to operate and implement. After rules and regulations are introduced in the internal control, it is easy to find out that the frame of the current internal control system is given priority to domestic production and operation business, on the contrary the internal control framework in overseas business is insufficient that affect the performances of overseas projects and delay to achieve the internationalizing operated goals of the companies. Therefore, it is imperative that the internal control framework in the process of its international operation study should be optimized.The purpose of this paper was to optimize the internal control framework of GWDC in the international operation, perfect internal control system in overseas, enhance the international competitiveness, ensure the realization of strategic target in the international operation.Meanwhile, it will also offer help to the improvement of the internal control system for oil drilling international industry.In China, the oil industry internal control theory research hasn’t been focus on by the scholar because this theory started late, so that the system of internal control theory is necessary to be reformed among the oil companies. Take the GWDC as an example, this paper puts forward the optimization for the internal control framework in the international operation and it can make up production and operation management for GWDC, improve the comprehensive competitiveness of the company on the international stage. Meanwhile, the inspiration which was concluded from GWDC can open the subject for discussion that will do good to our country international drilling construction of internal control framework system. Therefore, this article research has certain theoretical significance and practical significance as well as social significance.This article is divided into six parts. The first part is introduction, including the background of this paper, research purpose and significance, research status at home and abroad, the research contents and research methods. Through the comparison of the internal control framework research status at home and abroad, this paper summarizes the deficiency which exists in our internal control framework. This paper will also make further research by the combination of normative and empirical analysis method.The second part is the internal control theory of enterprises. Most of this part covered theoretical support between the principal-agent theory and system theory.Through systematic examination of the two basic principle, this paper will analysis the inner link of internal control theory, summarize the theory of optimization for the internal control framework, provide theoretical analysis basis of existing problems for internal control framework, and put forward the direction of optimization scheme.The third part is to analysis the status of the internal control framework. First of all, it gives a brief introduction to the background of international business; second, is to analysis the status of the internal control framework about overseas projects, especially from the perspective of the five elements of internal control framework; at last, it will summarize the existing problems which are sorted out.The fourth part is to make optimization scheme for internal control framework of international business. Firstly, it will make it clear of the principles and aims in the process of the internal control framework of international operating business. Then according to the practical problems, this paper will design the basic optimization ideas; Secondly, taking six key processes as examples, including monetary funds management, tax planning management, accounting management, contract management, human resources management and procurement management, this paper will find out the key points in controlling the internal risk of the international companies, make the specific content of the internal control framework optimization.The fifth part is enlightenment for optimizing case in internal control framework of GWDC. This part is written mainly of the perfection of internal control and risk management mechanism, enterprise business processes, the establishment of the internal control and risk management system, internal control and risk management which focuses on the implementation of the work and internal control and risk management training. Including five aspects, this paper put forward general suggestions for improvement in internal control of the international oil drilling industry.The last part is conclusion. This part will summarize the whole paper, and then put forward the innovation of the article points and limitations. One of the innovative points of this paper is that it is the first time to optimize overseas drilling operations by Loop control. Compared with domestic business, it has its own characteristics among overseas business such as currency, procurement, contract tax, accounting, human resources, and other aspects. Limitations of this article can be displayed as follows:first, GWDC, as an offshore drilling company, can’t completely replace the internal control system of the other four state-owned drilling companies; Second, because GWDC has nearly30countries which have the overseas business, the data collection is not comprehensive and the proposed policy is inadequate; Third, the optimized improvement measures of internal control framework of GWDC in international operation are also incomplete. Finally, this paper puts forward the direction of the research in this field in order to arouse interests of more and more scholars, it also contribute to the optimization of the internal control framework in international operation for state-owned drilling companies.