EVALUATION OF INTERNAL CONTROL OF CASH CYCLE (A CASE STUDY OF PT. X)

Abstract

Cash is one of the most important accounts in company. Because it’s important, so company must have procedures to control it. Internal control is defined as a process affected by an organization's structure, work and authority flows, people and management information systems, designed to help the organization accomplish specific goals or objectives. It is a means by which an organization's resources are directed, monitored, and measured. Standard Operating Procedures is procedures that help Company in controlling the employees while working in Company. The author makes this thesis in order to know whether this company has a problem with cash or not. The author used qualitative method to get primary data. One of the qualitative methods is case study. A case study is an exploration of related system (bounded system) or a case. Author used case study because author research and explore cases that happened in Company especially in cash. The staff stacks the documents above his desk without being filling. That’s can cause the document lost or become dirty. The amount of cash on hand in cashier is more than IDR 5 million. The money can be robbed or stolen. Cashier is not checking document from regular supplier before do payment. This is dangerous because the company will lose money when there is no goods that will be delivered to the company. Recommendation that writer gives is first, add more staff, because there is no segregation of duties. It’s dangerous when the only one staff manipulates data so he can get money. Buy ordner to filing the documents. Next is when the cash amount is more than IDR 5 million, cashier should deposit it to the bank. Last is, cashier must check documents before doing payment.