THE ANALYSIS OF INTERNAL CONTROL OVER REVENUE CYCLE (A CASE STUDY IN PT. ABC)

Abstract

The research was done in PT. ABC, located in located in Jl. Kapuk Kamal 3, North Jakarta, Indonesia. The objective of this research was to analyze how the revenue cycle`s internal control that implemented in PT. ABC. The type of data that will use in this research is primary and secondary data. In order to get the primary data, the research method that researcher used is qualitative research. Based on the researcher investigation during the two and half months, there are several weakness incurred in PT. ABC, first of all, the are some weaknesses relating with the documents, weaknesses in sales order and cash receipt procedure. There are several of effects that could happen from those weaknesses. First, inventory loss happens because the inventory records can be manipulated since there is no formal document. Second is shortage of cash because there is no segregation of duties for the cashier. So, it will bring an impact on the quality of financial reporting of PT. ABC. In order to solve the weaknesses of the company, PT. ABC needs to be more concern about its control towards the revenue cycle. Although the performance of PT. ABC is quite good without implementing the Accounting Information System Standards, it is better for PT ABC to implements revenue cycle`s internal control based on Accounting Information System Standard to prevent the risk of fraud.