Abstract:
The researcher has done researching at PT ABC, located in Jl. Soekarno Hatta, kmp. Central Bisnis Arengka, Pekanbaru. The objective of this research is analyzing how the internal control over cash management that implemented by PT ABC. The internal control will discuss about control environment and control activity on PT ABC. For control environments, however not all the elements will be evaluated. The researcher only evaluates organization structure, integrity and ethical value, human resource policies and procedures, assignment of authority & responsibility applied by the company. For the control activities, the researcher will only evaluates cash budget, documentation procedure, physical control and segregation of duties.
The researcher used qualitative research as the method in analyzing the data. The type of data that will use in this research is primary data. In order to collect/get the primary data, the researcher used several audit procedures that are interview, document investigation or inspection, and observation.
There are negative findings was found by researcher at PT ABC related internal control over cash management. Based on negative findings, the researcher found that the company does not have written structure organization and job description, no background and experiences in accounting field, no special training for new employees, company does not prepare cash budget and there is no segregation of duties for its employees.
In order to improve the current condition of the company, the researcher has some recommendation to overcome the weaknesses of internal control over cash which are: set up written organization structure and job description, recruit accounting’s staffs with accounting background, train its new employees, prepare cash budget and segregate duties for its cashier.
