EVALUATION OF INTERNAL CONTROL OVER PURCHASING ACTIVITIES OF PT. SANDIN GROUP

Abstract

PT Sandin Group is a big integrated enterprise with collective business scope of trade, logistic, engineering and manufacture. And the purchasing is the core business in the company and the core activities in the purchasing department, so that the purchasing department is the most important department in PT Sandin Group. There are some unsatisfied cooperation in the company, which leading to the bad result and unsatisfaction of the customer. The writer’s objective is try to find out the factors that affect the purchasing effectiveness in the purchasing process. The writer choses the qualitative method to do the research and analyze the internal control over the purchasing activity by conducting the interviews to respondents, inquire with person related to the purchasing activities as well as documentation the working procedures and job description of each related employees. During the research, the writer found out some improper behaviors related to Purchasing Activities. Such as the Contacting the wrong suppliers, got cheated by suppliers , because of without the classification of suppliers and the fixed relationship with the suppliers, besides, the function of Purchasing was distributed. No established cost data, the employees’ competence in English , Indonesian and Chinese language skills does not meet the job requirements, which leading to the miscommunication . Besides , there is no written SOP and Job Description. Based on the findings and the analysis of the causes and effects, the writer recommend the company to set up the cost data, the supplier evaluation system and offer language training to improve the employee’s language skill, and develop a specific written SOP and Job Description,etc.