THE EVALUATION OF THE INTERNAL CONTROL OVER PURCHASING AT PT. ANUGERAH DAYA INDUSTRI KOMPONEN UTAMA

Abstract

Purchasing activities is one of the most crucial activities that can affect the profit and loss of the company. They define cost of products or cost of goods sold. Management must setting proper internal control system over purchasing activities to ensure that company purchases qualified materials both in quality and quantity, purchase with the best price, and records all of the purchasing transaction. The research used qualitative research with verification approach. The researcher gathered and processed data by using types of evidence which are inquiries to the client, observation, and documentation. The criteria used are gathered from text books and some other references from the library and internet. The criteria will be used as a basic reference to evaluate the existing condition of the company. The result of the research shows that, there are some positive and negative findings as follows: the positive findings are the company gives training and education to its employees; it has a written organization structure, written Standard Operating Procedure, written recruitment and punishment system; and applies a good prenumbering system on its documents. The negative findings are the company has no written job description, resulting in employees will only perform tasks ordered by their superior; there is only one copy of Purchase Order, therefore the company will not be able to show the concrete documents which proofing the purchase activity; materials checks done after materials are received by the company, therefore the supplier can escape from the responsibility for any discrepancies; no Receiving Report sent to Purchasing Department, therefore Purchasing Department cannot assess the supplier performance in providing materials. From the findings above, the researcher recommends that the company should provide a written job description in order to make every function knows and understands about their authority and responsibilities; the company should make six copies of Purchase Order and sent it to the Supplier, Accounting Department, Warehouse, Production Department, QC Department, and Purchasing Department; the receiving staff of the company should do material checking before they sign the Delivery Order; the Receiving Report should be distributed to Accounting Department, Purchasing Department, Warehouse itself, and Supplier (if necessary).