EVALUATION ON INTERNAL CONTROL OF PAYMENT SYSTEM IN CREDIT UNION (CASE STUDY OF KOPERASI KARYAWAN PT. PUSRI)

Abstract

The writer would like to present a research regarding the influence of internal control elements with the activities in credit union especially for payment system. Based on this thesis, writer tries identifying the influence of each element in internal control to all of the steps regarding the existing system in the credit union. Furthermore, there is one Credit Union was being observed in order to complete this thesis which is Koperasi Karyawan PT. Pusri. This is qualitative research using descriptive analysis technique to analyze the data, which involves theoretical literature comparing with the fact that happened in the company. Data used in this research is primary data was obtained from the direct interview and observation at Koperasi Karyawan PT. Pusri. The primary data are collecting to know underlying idea and current condition of company’s circumstances in relation of the implementation of complete internal control elements to the payment system. The support of literature review is needed as the secondary data. This study has found some deficiencies in the company related to the implementation of internal control elements in the existing payment system. There are several steps in the activities of credit loan which is conducted in the company don’t implement the complete elements of internal control. The existing payment system in the company need improvement when it is deal with external party of credit activity like bank. This system doesn’t implement good internal control when the activity between company and bank is occurred. It may raise some possible fraud during the activities. Considering the findings of the evaluation, the writer suggests the company to continuously do the evaluation and improvement to the existing payment system related to the implementation of complete internal control elements in every single step of it. The writer also suggests the company to conduct good internal control during the activities conducted with the external party like bank. These suggestions may help the company to detect and prevent possible fraud. In addition, these suggestions may improve the performance of the company.