The Evaluation of Company X Internal Control Based on Coso

Atria Putri, Tubagus M. Yusuf Khudri

Abstract


As many as 27.6% of the 370 MSMEs that showed an increase in sales during the COVID-19 pandemic were those who were able to implement digitalization. Online shopping is now the leading choice and the number has been increasing by around 30% in Indonesia. One of the shops that experienced an increase in sales during the pandemic is Company X, engaged in the beauty industry. Running this shop for more than four years, Company X's finance division only consists of the owner who has a medical background. Therefore, the purpose of this study is to help the company improve risk mitigation, internal control, and the performance of its revenue cycle. The approach uses a case study method, analyzed by collecting data through semi-structured interviews about the revenue cycle and then evaluated based on 17 COSO 2013 principles. The results of this study indicate that the company has carried out control efforts informally, but it is not adequate because it is not in accordance with COSO 2013 and SAK EMKM. Company X must establish written and formal documents related to SOPs, risk management, evidence of the results of actions, and conduct customer satisfaction surveys.


Keywords


internal control; COSO 2013; MSMEs; accounting information system; revenue cycle

Full Text:

PDF

References


Afiezan, A., et.al. (2020). The Effect of Free Cash Flow, Company Size, Profitability and Liquidity on Debt Policy for Manufacturing Companies Listed on IDX in 2016-2019 Periods. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 3 (4): 4005-4018.

Agoes, S. (2004). Auditing (Pemeriksaan Akuntan) oleh Kantor Akuntan Publik. Edisi Ketiga. Jakarta: Fakultas Ekonomi Universitas Indonesia.

Anjani, K. I. (2021) Industri Kosmetika Diproyeksi Tumbuh 7 Persen Tahun Ini. Bisnis Indonesia, Bisnis.com.

Bisnis.com. (2021). Survei BI : 87,5 Persen UMKM Indonesia Terdampak Pandemi Covid-19. Bisnis Indonesia.

BPS, B. P. S. (2021). Retrieved from https://www.bps.go.id/

COSO. (2013). Executive Summary | Internal Control-Integrated Framework.

COSO. (2021). Welcome to COSO. Retrieved from https://www.coso.org/

Dalimunthe, H., & Pane, A. A. (2021). The Effect of Internal Control and Compliance with Accounting Rules on the Quality of Financial Statements at PT. Bank of North Sumatra Medan. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(1), 966-975.

Deloitte. (2013). COSO 2013 Framework on Internal Control: Prepare for the changes. Retrieved from

https://chapters.theiia.org/los-angeles/Events/Documents/FinalPlacemat_COSO_OC.pdf

Devindasari, R. L. (2018). Kesiapan Usaha Mikro, Kecil, dan Menengah (UMKM) dalam Mengimplementasikan Standar Akuntansi Keuangan Entitas Mikro, Kecil, dan Menengah (SAK-EMKM) untuk Meningkatkan Akses Modal Perbankan dan Lembaga Lain di Kota Malang. Jurnal Ilmiah Mahasiswa FEB, 7(1).

Fontana, A., & Frey, J. H. (2000). The interview: From structured questions to negotiated text. Handbook of qualitative research, 2(6), 645-672.

IAI. (2016). SAK EMKM(pp. 72). Retrieved from http://iaiglobal.or.id/v03/standar-akuntansi-keuangan/emkm

Katharina, N., et.al. (2021). Influence Capital Structure, Liquidity, Size the Company, Debt Policy and Profitability towards Corporate Value on Property Company, Real Estate and Building Construction Listed on the Stock Exchange Indonesia Period 2016-2019. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 4 (2): 2241-2256.

McNally, J. S. (2013). The 2013 COSO Framework & SOX Compliance: One approach to an effective transition. Strategic Finance, 6(1), 1-8.

Nurazizah, A., & Novita, N. (2021). Healthtech Startups Internal Control to Increase Competitive Advantage in the New Normal Era. Jurnal Akuntansi, 11(2), 105-122.

Putri, R. A., & Nugroho, P. I. (2020). SAK-EMKM Implementation of Medium Enterprise Financial Statement in Salatiga (Case Study of Medium Enterprise XZY in Salatiga). International Journal of Social Science and Business, 4(2), 242-250.

Rivera-Alsing, F. (2014). COSO/Internal Control. Paper presented at the The Basics of Internal Auditing, Tallahassee.

Roberto, Z. (2008). Financing Technology Entrepreneurs and SMEs in Developing Countries. World Bank, Washington DC, available at: http://www. infodev. org.

Romney, M. B., & Steinbart, P. J. (2018). Accounting Information Systems. Fourteenth. In: New York: Pearson.

Saleh, A., Dalimunthe, A.H., and Lubis, F.H. (2019). Development of Banking CSR Model for Community Empowerment Slum Area in Medan City. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 2 (3): 39-50.

Wicaksono, A. (2013). Evaluasi Sistem Akuntansi Siklus Pendapatan pada PT. Unilab Perdana. Binus Business Review, 4(1), 197-206.

Widiarto, B. (2021). KATADATA, Pelatihan Wartawan BI kuartal I 2021.

Wirawan, S., Djajadikerta, H., & Setiawan, A. (2021). Penerapan Pengendalian Intern pada 13 UMKM di Bandung. Jurnal Administrasi Bisnis, 10(1), 33-44.

Yang, X., & Li, B. (2019). Research on the Influence of Internal Control Quality on the Growth of SMEs. Paper presented at the 2019 3rd International Conference on Education, Economics and Management Research (ICEEMR 2019).

YLKI. (2021, January 14). Kontan.co.id.

Yusuf, M., & Kanji, L. (2020). Effect of internal audit and accounting information system on the effectiveness of internal control. ATESTASI: Jurnal Ilmiah Akuntansi, 3(2), 120-125.




DOI: https://doi.org/10.33258/birci.v5i1.3592

Article Metrics

Abstract view : 208 times
PDF - 121 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

 

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.