Evaluation of Internal Control System in Cash Disbursement Cycle: Case Study of Construction Company PT XYZ

DOI

10.2991/apbec-18.2019.10How to use a DOI?

Keywords

fraud, internal control system, cash disbursement

Abstract

Construction Company PT XYZ’s actual situation based on an internal audit report shows some unusual transactions related to the cash disbursement cycle. This indicates that the company needs an adequate internal control system to provide assurance in cash disbursement transactions so that reports on cash disbursements can be fairly presented. Furthermore, if internal control is properly designed and implemented, it can prevent and detect fraud that might harm the company. This research evaluates and proposes improvement of internal control over PT XYZ’s cash disbursement cycle by using principles of the COSO framework 2013. This descriptive qualitative research is a case study observing the object of research and interviewing PT XYZ’s senior personnel. Results show that some weaknesses remain in internal control over the company’s cash disbursement cycle. In addition, this research also conducts self-control assessment and fraud analysis to determine appropriate and effective internal control in the cash disbursement cycle.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nindya Farah Dwi Puspitasari
AU  - Chaerul D. Djakman
PY  - 2019/07
DA  - 2019/07
TI  - Evaluation of Internal Control System in Cash Disbursement Cycle: Case Study of Construction Company PT XYZ
BT  - Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)
PB  - Atlantis Press
SP  - 63
EP  - 71
SN  - 2352-5428
UR  - https://doi.org/10.2991/apbec-18.2019.10
DO  - 10.2991/apbec-18.2019.10
ID  - FarahDwiPuspitasari2019/07
ER  -