EVALUATING INTERNAL CONTROL OF FINISHED GOODS AT PT. XXX BASED ON COSO FRAMEWORK (CASE STUDY IN MANUFACTURING INDUSTRY)

Abstract

There are several things emerge in management cycle of finished goods. They require attention to deal with existing problems by forming companies good internal control system. So, that conductive on one of companies assets can be created. Evaluation on internal control system will not merely comprise the process and procedure of management of finished goods. It’s also covers data completeness in the form of documents or form linked with stock must be brought to account in the form of report and reliable accounting data. In this research, the writer use qualitative method to know the internal control in this company. One of the ways to know how they do internal control in this company is interview. The writer interviews related staff to know the internal control and compare what they do and what the procedures from the company. As the results, the related staff does everything based on the procedures. But, the management lack of control for job description for every employee. So, this can make the opportunity for fraud because outgoing and incoming goods just checked by one person without checked again from another supervisor. And then, the management authorized the one person for control raw material, work in process and finished goods. This is not good for internal control because it can make opportunity for any fraud in this company. This company doesn’t use printed number. So this can make the other opportunity for misused. The writer recommended for this company to use internal auditor to make sure all of the data is valid. However, the management should consistent for job description and segregation of duties for each employee. And then, the company use print-numbered to avoid any fraud.