THE OPERATIONAL AUDIT OF INVENTORY MANAGEMENT AT PT. HANNA INSTRUMENTS INDOTAMA

Abstract

In the rapid economy development, there are many companies or enterprises growing fast. Their aims are to gain profit and maintain the existency of the company in the long term. The main objectives of this paper is to understand the implementation of the separation between the functions of the warehouse receipt and warehouse administration for the inventory records,and the objectives are also to evaluate the weakness of inventory management policy and to evaluate integrated policy of the damage and the slow moving goods in PT. Hanna Instruments Indotama. The writer conducts audit operational of internal controls using the Internal Control Questionnaire (ICQ), Interview, Observation, Documentation, Physical Examination of whole Inventory Management in Equipments Laboratory that has been done by PT. Hanna Instruments Indotama, but there are weaknesses in the Inventory Management.. There are some weaknesses in PT. Hanna Instruments Indotama , They are: the company does not make the purchase planning of goods, the company only does checking procedures of the quantity when the goods are received by the company, there is an accumulation of goods existing in warehouse, there is a mixing goods and the company does not separate between good and damaged goods , stock opname is done by the warehouse officers only and it is not accompanied by other departements, such as departement of finance. The company applies the stock opname once a year and the company never applies stock opname suddenly or stock opname is never done more than once a year. Therefore, the writer suggests some recommendations on the company in order that the company can cope with the deficiencies and weaknesses regarding for maximizing the performance at the Inventory Management for Laboratory Equipments.