ANALYSIS THE IMPLEMENTATION OF THE INTERNAL CONTROL SYSTEM ON MATERIAL RECEIPT AND EXPENDITURE PROCEDURES AT PT. ABC

Abstract

This research is a descriptive qualitative study that aims to determine the implementation of the internal control system at PT ABC. In the data collection process, this study involved two main informants and used interview and observation methods. The results showed that the implementation of the internal control system in the material receipt and expenditure procedures at PT ABC has not run optimally. There are still a number of weaknesses, such as the absence of an organizational structure with an appropriate division of tasks, the absence of written policies, incidental risk management, weak recording systems, and the absence of scheduled evaluations. Therefore, the company needs to evaluate and improve the implementation of the internal control system, especially on material recording and distribution, to reduce the potential for errors and improve operational efficiency. This study concludes that the internal control system has an important role in supporting the continuity of the company's operational activities.