EVALUATION OF INTERNAL CONTROL ON PROCUREMENT OF SPAREPARTS IN PT. XYZ

Abstract

Inventory is one of the assets owned by the company. Since inventory is an asset, it should be a good Internal Control to keep the inventory of bad things that may happen. Therefore, the purpose of this research is to evaluate the Internal Control of inventory in PT. XYZ. This thesis uses qualitative research (case study). It shall be useful to solve company's problems. The writer uses the data that came from primary PT. XYZ, and secondary literature review through the data. The writer collects and processes the data through the inquiries to the client by interviewing and Internal Control Questionnaire, observation and documentation. From the results of the research, the writer found several weaknesses such as, company currently do not have Standard Operating Procedures, especially in delivery of goods. The company uses manual operating system. The company has implemented Internal Control of Inventory, but still needs to be improved. Then, some controls are not implemented consistently. There is only one staff in Warehouse that is Administration staff. She has responsibility for making quotation, receipt of goods, create Purchase Order to suppliers, and create Delivery Order to customers. And also in PT. XYZ does not have internal control to control inventory. The writer has provided some recommendations in PT. XYZ. The writer found weaknesses in the company, the company should create an SOP that regulate and manage the inventory. The company should use computerized system to accelerate the and accurate performance. The company should add some cabinets to store the stock due to the high production activity that produce more inventories to be stored. The company should have an internal audit to conduct check especially to the inventory in the warehouse. The Office Manager must create PO to the supplier on the same day the company receives PO from customers.