THE EVALUATION OF INTERNAL CONTROL ON CASH RECEIPT AND DISBURSEMENT (CASE STUDY: PT. CPNM)

Abstract

Cash is the most liquid assets and will be affected necessarily in almost every transaction done by company. The company needs to set-up a proper internal control system on cash receipt and disbursement in order to protect the cash. The purpose of this research is about evaluation of internal control on cash receipt and disbursement of PT. Catur Putra Nusantara Mandiri (PT CPNM). This research uses a qualitative research (study case) with verification approach. All research data is collected and processed through audit procedures. The processes of data through 3 types of evidence, they are inquiry, observation and documentation. The results describe that the implementation of internal control on cash receipt and disbursement. The writer find positive and negative finding. Based on positive finding the writer finds that company has written organizational structure and the company safeguard the assets and documents. In negative findings, the writer find that the company does not have written job describtion, Standard Operational Procedure in receiving and disbursement of cash, does not do periodically physical exam, and the documents are printed not in pre-numbered. The study purposes some recommendations which are: The company should have and set up a written and clear job description to provide information about the scope of responsibilities and authorities of each functions. The company should have a written Standard Operation Procedure in receiving and disbusrsement of cash as a written instruction or guideline during running activity related cash receipt and disbursement. The Head of Accounting should doing physical examination on cash regularly without notice in order to detect earlier if there is discrepancy. The company should make the document in pre-number to control document and prevent company from misuse.