EVALUATION OF INTERNAL CONTROL ON CREDIT SALES STUDY CASE AT CV. ABADI SEJAHTERA

Abstract

To achieve the company‟s goal in obatining maximum profit to meet its liquidity, the company runs its business activities by selling their product on credit and in cash. Credit sales creates a problem since there is possibility that the customers may not pay their debt. It can be very risky for the company if the customers have delayed the payment or even completely unpaid. The research used qualitative research which is case study approach, through procedure that produces descriptive data from the company. The writer gathered data by using types of evidence which are inquries to the client, observation, and documentation. The writer also gathered theories from text books and some other references from the library and internet. Literature review is used to evaluate the existing condition of sales in the company. The results from the analysis and evaluation provide recommendation that is useful for the company. From the analysis and evaluation that the writer has conducted, there are some findings occur in the company. The company does not have standard operating procedure. It is because this company is a developing company, and also all employees of this company had been working for long time on this company, so management thinks SOP would not been necessary. There is no written job description. It is because management considers the employees have understood the details of their work, and often employees are just waiting for orders from his superiors to do the job. The company does not have attendance list for employees on industry. It is because The company just relies on the attendance report from head of the Manufacturing Department, and a report from the head of the Manufacturing Department was satisfactory. Thus, they do not need to improve the treatment for labor attendance. The Company does not make its documents in pre-numbered, especially the invoice and delivery order issued. This happens because the Outsourcing & GA Departments did not know the function of pre-numbered is, so they think it is unnecessary for now. From the findings above, the writer recommends solution for the company to overcome those problems. The company needs to issue a written SOP as a guideline to ensure and control the activities among the employees. The company needs to provide a written job description in order to make every function know and understand about their authority and responsibilities. The company should provide such as digital fingerprint attendance to control the presence of absence or attendance time recorder (punch card machine). The company should make all documents printed in pre-numbered.