THE EVALUATING OF INTERNAL CONTROL ON PURCHASING AND ACCOUNT PAYABLE (A CASE STUDY IN YADIKA HOSPITAL EAST JAKARTA)

Abstract

Internal Control is a system that consists of policies and procedures designed to provide management with reasonable assurance that the company achieves its objectives and goals. The objectives are reliability of financial reporting, effectiveness and efficiency of operations, and the last is compliance with applicable laws and regulations. Management designs system of internal control to accomplish all three objectives. This research was purposed to do study case research in a company. This qualitative research is done by literature study and fieldwork research. Literature study is collecting, reading, and analyzing the information taken from the related sources. Fieldwork research is obtaining primary data related to the topic in the company being researched through inquiry, observation, and documentation. The result of this study indicates that the internal control on purchasing at Yadika Hospital East Jakarta is good enough, but there are some conditions that need to be improved. The condition when Logistic Unit creates Purchase Requisition. The director should have know the Logistic Unit activities in creating the Purchase Requisition in order to control the logistic purchasing. Logistic Units directly send the SPMU to accounting and finance department to record the account payable. SPMU is a letter that creates by Logistic Units to show the hospital has account payable. The Logistic Units have been order the logistic or material without Purchase Order. The Logistic Unit directly orders the material to supplier by phone. The Logistic Unit can purchase the material in cash by asking the approval from accounting and finance department. The Logistic Units not asked the approval from the director as a controller the purchasing of logistic. As the recommendation of this research to Yadika Hospital East Jakarta are Purchase Requisition that is prepared by Logistic Unit has to be supervised by higher level. The Purchase Requisition has to be supervised by the director. SPMU have to approve by the director before Logistic Unit send it to the accounting and finance department. The SPMU have to approve by the director for controlling the records of account payables. Logistic Units have to create Purchase Order before they order the logistic and the Purchase Order have to approve by director. Logistic Unit have to ask the supplier about the delay in sending the logistic or material and Logistic Unit have to analyze whether the logistic or materials have to purchase immediately or not. Keywords: Internal control: a system that consists of policies and procedures designed to provide management with reasonable assurance that the company achieves its objectives and goals; SPMU: letter that creates by Logistic Units to show the hospital has account payable.