Authors:
Ceicilia Astri Hartanti
and
Malik
Affiliation:
University of Indonesia, Indonesia
Keyword(s):
Agency theory,
competitive advantage,
information technology,
internal control,
non-profit organization,
revenue cycle,
value
Abstract:
Information technology utilization could promote more efficient business process. However, if it is not supported by adequate internal control activities, management will lose control its operational activities. Fraud, loss of trust from stakeholders, and reputation declining are risks that must be borne due to the lack of internal control. By using a qualitative approach with a case study approach at ABC Foundation, a non-profit organization in education industry, this study aims to analyse and design the internal control activities in its new student admission business process. The research was conducted by observation, series of interviews with its management, and analysis on the internal documents. The results show that there are some weaknesses on procedures in optimizing its billing process which due to lack of procedures’ adjustment to current business processes and unstructured implementation of internal control activities. It impacts the balances of accounts receivable and t
he value of the recorded income being inaccurate and the number of complaints from the parents of students due to inappropriate billing amount. Therefore, this study provides recommendations for improvements in company’s financial administration procedures and internal control activities that can be applied to solve existing problems while improve company’s performance and reputation.
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