With regard to the oil companies think about internal financial controls

Abstract: The internal financial control is the core of enterprise management is the key to its survival and development, the relationship between the survival of enterprises, strengthen oil company's internal financial controls, improve its management and for ensuring the smooth realization of business goals is essential.

Keywords: oil companies, financial control, status, measures

First, the significance of internal financial control and content
Company's internal financial control is a measure of the level of its financial management an important part of practical experience the following conclusions: get control of the strong, out of control is weak, without control is chaos. Good internal financial control not only the rational allocation of corporate resources, improve their labor productivity, but also prevention and found that corporate internal and external financial violations. Most have been found in the current manipulation of accounting information in fraud cases, very important reason is the company's internal financial control link is weak.

In 1970, the Accounting Research Association of Japan released the audit of the Special Committee <<financial statements audit of internal control Research>>, the report explained in detail the meaning of internal financial controls Internal financial control is the business managers to plan, adjust and assessment of production and business activities and to develop the system, method and organization of the general purpose is to safeguard the assets of the enterprise security to ensure the reliability and accuracy of accounting information. Thus, the internal financial control of the key personnel of the company board of directors, managers and responsible people, through well-defined internal rules, budget, requiring enterprises to subordinate departments and agents of the performance appraisal and evaluation methods, the establishment of individual performance appraisal of reward and punishment system, and to achieve financial control objectives.

Internal financial control include: First, the responsibility of controlling it, including production management, property management, certificate management, etc., based on job responsibilities as the focus of management control responsibility for control of the business object is the responsibility center, the focus is to control production business activities of the process and effect evaluation, supervision and inspection responsibilities for compliance. Second, the budget control budget plan, planning business operations during a certain accounting of financial expenditures of the budget control with full, full, full of features, is an important method of monitoring production activities, you can group all the activities are incorporated, then the business objectives, system constraints, performance evaluation, evaluations and other control methods together, play control infiltration into the production, operations, sales, financing, investment and other aspects of the role. Third, process control, namely the use of a variety of scientific methods to ensure normal production and business activities, and thus to obtain the desired economic benefits, such as production procedures, accounting methods, etc. Fourth, performance evaluation, namely the use of management science, mathematical statistics, accounting and other knowledge of the business for some period of production and sales management, capital efficiency, management performance and other analysis, assessment, and thus comprehensive, objective evaluation.

Second, the field status of internal financial control
At this stage, oil companies in a market economy environment, rapid development, achieved good results, but in the company's financial controls has also encountered some problems, and only clearly understand and to improve before it can enable enterprises to be more good growth.

(I understand the importance of financial internal control deficiencies
Some oil field management understand the importance of financial control, accounting information often are due to management's behest, they simply in order to pursue short-term, local interests and instructed accountants fabricating false information. This lack of also reflected in the following areas: failure to follow <<accounting>> auditing requirements were established and cashier positions, even for convenience, by one person part-time positions are incompatible, which allows the accounting staff for the same person received payment and reimbursement business, prepared by the cashier adjusted bank balance sheet, not in accordance with the provisions of the accounting job transfer procedures are not appropriate, such information is incomplete.

(Two low quality of financial control
Internal financial control system development, implementation and people are closely related to control personnel coordination, communication skills, comprehensive ability to directly affect the efficiency of execution control, especially on the key aspects of financial control executives, their level of quality directly affect the implementation of effective internal financial control.

(C) the enterprise budget control is not comprehensive, provide hard data
Management, including budget preparation, execution, control, evaluation of four, the same, budget control also covers the control of the above four parts, though, after years of practical experience, most of the oil companies already formed a unique from the next And on the top-down budgeting system, or, complete the company's various budget targets, but still there may be elements of the budget is incomplete, unclear responsibility for the budget, budget execution is not complete, the feedback information does not reach the management, not to improve the timely detection of deviations and other issues of course, there are still a considerable number of enterprises to establish a comprehensive budget management system, and some companies even with the budget management system, but for various reasons, the system does not become the basis for production and operation guide , free to change the system, budget management and a dummy, data can not be timely, accurate information. there are some scientific enterprise budget system design, the lack of rigorous evaluation and measurement standards, cost of record confusion, artificially inflated the budget management in randomness, the lack of authenticity of the data records.

(Four low utilization of funds
Money funds are the most liquid assets, including cash and bank deposits is the most prone to errors of assets. Oil companies generally have separate financial institutions, coupled with the fixed opening bank accounts, have occupied part of the capital, will inevitably result in internal funds dispersed, idle and precipitation, thereby reducing the overall efficiency of capital the same time, some oil companies in the use of funds, there are still monitoring the phenomenon of weak links, although the development of a monitoring system, set up oversight functions , but in the end for various reasons, unable to play a role.

(V poor return on investment
Independent oil companies is the implementation of business and individual accounting subjects of law, when making investment decisions have a greater right to choose, then it may be due to a lack of understanding and evaluation of certain items, resulting in unwise investments, the project benefits the poor consequences. In addition, the oil companies for a variety of industry restructuring, mergers and acquisitions involved to face the surge in the control of assets, product diversity increased, demand for funds increases, more and more difficult financing and many other challenges in this case , the investment is often only the pursuit of short-term gains at the expense of investment projects, long-term impact on business.

(Six narrow cost control
Cost control is an important part of financial management, financial control is an important part. In accordance with the cost control requirements of modern enterprises, the use of a narrow concept of costs there are significant flaws. Narrow concept of cost to oil companies to the production cost of crude oil as a management starting point and core focus only on the target cost and cost estimates, the difference between target cost and actual cost analysis and control, which is affected by the impact of traditional cost control, because the planned economy period, the subject of corporate cost-control products costs, but the market economy system, part of the company's cost control object not change.

(G messaging and performance evaluation problems
Timely and accurate transmission of information to help companies deal with internal and external economic issues, to further enhance the efficiency and effectiveness of control. Messaging require departments not just the use of information, but also can provide useful information to other departments, so that each departments in the use of information who, it is also the provision of information to pass by, but part of the oil company's performance appraisal system, assessment of management are achieved when effective, so easy to create responsible people have the immediate interests, regardless of long-term interests of short-term business activities.

Third, to improve oil field response of internal financial control
(An enhanced leadership emphasis on the financial internal control
Even if the system of internal financial control is sound, if not the support unit leaders can not be effectively implemented, can not play corporate financial control and internal control system oversight role. <<Accounting>> for the various business managers the responsibility to conduct a detailed accounting requirements, therefore, the financial internal control in the oil field practice, it is important to improve the implementation of practice managers' accounting>> enthusiasm and consciousness, corporate financial internal control system to ensure efficient implementation.

(B sound corporate governance structure
Modern corporate governance structure is the establishment of the board of directors, shareholders, board of supervisors, and managers clear responsibility for them and so that they each perform their duties, the formation of efficient checks and balances, in order to better provide for the implementation of internal financial control basis . Links to free download http://www.hi138.com (three continuously improve the quality of accountants
Accountants to assume primary responsibility for accounting work, their professional competence, professionalism, communication skills and ability to work in areas such as the level of quality is to determine the field of internal financial control system can be effectively implemented key factor.

(D to establish an effective financial internal control system
Oil company closely linked to the actual situation of the unit, the establishment of clear responsibilities, the system provides a sound, orderly operation of financial internal control system is running, and handle cost control and effective control of the relationship between the scientific work of the division of each position responsibility, clarify the objectives and responsibilities of financial operations, accounting departments to ensure evidence-based, but also to ensure the interrelated responsibilities between the constraints. only to develop a clear job responsibilities, scope of work and work permission in order to form a section The internal control section interlocking operation mode.

(E) implementation of a comprehensive budget management
Comprehensive budget management has become an important contemporary corporate financial management content, is also a measure of internal management of an important indicator of the level of the budget control is a systematic operational procedures, not only to reflect the company's corporate structure is perfect, but also to ensure the production the orderly conduct of business activities, for the control and supervision, audit and assessment was provided. comprehensive budget management requirements necessary to consider the recommendations of its subsidiaries and interests, but also facilitate the production and operation of headquarters supervision of subsidiary activities of a comprehensive budget management needs Corporation and subsidiaries of mutual coordination and cooperation between, to reduce friction, thereby improving management efficiency, while, in the implementation of a comprehensive budget management process should focus on the overall work process control, thus ensuring the budget system to play an effective role.

(Six good job of funds control
Oil companies should establish a capital budget control system, bring the financial management system and integration of the dual role of financial management and banking network in order to achieve the full advantage of the rapid transfer of funds, oil companies should be established in the major capital approval system covering major investments, major financing , debt guarantees, asset disposal and so on. major corporate investment and financing projects must go through strict control of the board of directors, faced the loss of assets disposal, should first verify the losses, according to the basic units can be obtained shows that the loss of evidence of the facts to confirm The loss of the asset accounts, the amount; secondly to determine responsibility, companies should result in assets of the organization of specialized personnel to check the loss of reason, and according to the nature of loss, in accordance with relevant provisions action or punishment of the responsible person, the last business shall internal financial control system audit verification of the assets.

(G perform a comprehensive risk assessment
Risks affecting the survival and development, is able to effectively control the risk is directly related to the success of the business field. Internal financial control is to ensure the smooth realization of the goals of the important ways, bound by its survival of the internal and external environment and the impact of internal and external risks, the implementation of risk management is the trend of science. Full of oil companies ongoing risk assessment related to the company's long-term future development need to adhere to long-term issues should be raised to the height of corporate strategy to consider.

(Eight to carry out periodic financial checks
Financial internal controls in order to be effectively implemented, we must have a sound system of rules, but also must be persistent control of the implementation of regular, periodic routine inspections. Routine inspections, terms of timing, can be periodically periodic inspection, it can be spot checks from time to time; from the content point of view, can be a full and complete examination, it can be the key part of the sample from the range, it can be for all of the accountants, it can be extracted a certain accountants. implement that, through the use of a variety of ways to check the implementation of financial control system, you can discover the work of loopholes and problems and in a timely manner to correct the error correction. routine inspections is to protect the enterprise's financial internal control system successfully effective means of implementation.

(Nine optimize performance appraisal system
Performance appraisal is based on the employee's job performance, evaluation has two essential premises: First, have the basis for evaluation, it is a fair, just and open performance appraisal system is an important prerequisite, the second is to be able to staff performance of fair, accurate measurement, which involves the design of performance appraisal and use of indicators, the assessment is the use of evaluation methods.

(J strengthen information exchange and communication
Timely, accurate, and to maximize access to and use of external as well as from within the enterprise and business-related market, technology, management and other aspects of information, internal financial control to achieve goals. Transmission of information and communication exist in the enterprise All work, from production management, financial accounting, process control, to the staff evaluation, management and communication with staff between activities a good exchange of information and communication can enable enterprises to keep abreast of the various departments of the financial situation of the use of real-time monitoring of each departments of production and operation, and to detect possible problems, thus improving the effectiveness and efficiency of financial control, in addition, also help the query and processing real-time financial information.

References:
1, Zheng stone, Zhou Yonglin, Liu Hua, Modern internal financial control system [M]. Lixin Accounting Publishing House, 2000.

2, Li Lianhua. Corporate governance and internal financial control links and interaction [J]. Accounting Research, 2005 (2).

3, Chi Guangya About Enterprise Group Financial Control Some Problems [J]. Chief accountant of China, 2009 (1) Links to free download http://www.hi138.com