Authors:
Triyanda Agustin Ginting
and
Siti Nurwayuningsih Harahap
Affiliation:
Airlangga University, Indonesia
Keyword(s):
Fixed Assets,
Internal Control,
Identify Risk,
Control Activity,
Fixed Assets Procurement,
Management Activities
Abstract:
This research aims to analyze internal control system and propose a design of standard operating procedures (SOP) for fixed asset procurement and management activities in PT ABC. This is a qualitative research with case study method at PT ABC which is engaged in rental fixed assets for supporting education facilities. We have interviewed the management of PT ABC, conducts observation, and analysis internal documents. Based on those data, we analyze the internal control system that has been implemented by PT ABC related with procurement and management activities of fixed assets, including identifying risk in those activities as the basis for the analysis of the ongoing internal control system. The results show that there are some weakness on internal control system, especially related to fixed assets management activities. Therefore, some risks have not been mitigated yet. In addition, the Company has not formalized internal control procedure yet, which caused unstructured implementat
ion. Therefore, this research provides recommendation for improvement in internal control activities and proposed a design of standard operating procedure (SOP) related to procurement and management activities of fixed assets that tailored with the PT ABC needs.
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