Articles

The Influence of Internal Control of Raw Materials and Optimization of Operational Management on Company Sustainability (Case Study of PT. Timuraya Tunggal)

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This study is intended to examine the effect of internal control and operational management on company sustainability. the research method used is quantitative with Partial least Square-Structural Equation Modeling (PLS-SEM) analysis using the SmartPLS 4.0 application. Sampling technique by applying purposive sampling technique. Data was collected through the distribution of questionnaires in one manufacturing company engaged in the industrial processing sector. The results showed that the internal control of raw materials in the Company had a significant and positive effect on the sustainability of the Company. optimization of operational management is also proven to have a positive and significant impact on the sustainability of the Company. The internal control of raw materials contributes to increasing the efficiency of operational management which will strengthen the sustainability of the Company. thus supporting business continuity in the long term.

Analysis of Cash Expenditure Accounting Information Systems to Improve Internal Control Activities at Medan Plus Rehabilitation Center Foundation

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This study aims to analyze the accounting information system for cash disbursements in enhancing the effectiveness of internal control activities at the Medan Plus Rehabilitation Foundation. Financial management, particularly in cash disbursement, is a crucial aspect in ensuring accountability and operational efficiency within the organization. The current financial recording system, which relies on Microsoft Excel, has several limitations such as a high risk of input errors, absence of audit trails, weak access controls, and delays in financial reporting. This research uses a qualitative approach with descriptive analysis methods. Data collection was conducted through interviews and documentation involving four key respondents in the foundation’s finance department. The results indicate that the current accounting information system for cash disbursement does not fully support optimal internal control activities. Authorization, segregation of duties, supervision, accounting records, access control, and independent verification still require improvement. An integrated and automated accounting information system is needed to enhance transparency, accuracy, and reliability of financial information, as well as to strengthen the overall internal control system.

Assessing an Indonesian Credit Union’s Internal Control Using COSO ERM Framework: A Case Study at Credit Union Kridha Rahardja

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COSO ERM framework has been widely used for assessing the quality of internal control in many forprofit companies. However, there is still limited application of COSO ERM Framework for non-profit organizations and social enterprises with dual objectives like credit unions. This research evaluates how effective and comprehensive the implementation of internal controls is within a Credit Union in Indonesia, a member-based social enterprise offering financial services to middle-low-income groups. This is a collaborative case study of the researcher and the practitioners of the credit union. Participants shared their perspectives through questionnaire feedback, interviews, and focus group discussions, to examine the control activities within the organization and identify risks that may impact the organization’s goals. The findings suggest a critical demand for forming an operational manual with detailed structures and policies. Furthermore, the sense of loyalty is the key to enhancing members’ participation in various activities within the organization.

The Effect of Apparatus Commitment on the Relationship of Budget Participation and Internal Control with the Performance of Government Apparatus in the Government of Aceh

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This study aims to examine the effect of apparatus commitment on the relationship of budget participation and internal control with the performance of government apparatus in the government of Aceh. The population of this research were all Head of Institution, Head of Program Sub-division, and Financial Administration Officer in The Aceh Work Unit which the sampling technique uses non probability sampling with census method. The data source in this study uses primary data that is the acquisition of questionnaires from respondents. Data analysis method used is Moderated Regression Analysis (MRA) with the help of SPSS 25. The result of this research shows that (1) budget participation and internal control has an effect on performance of government apparatus in the government of Aceh, (2) budget participation has an effect on performance of government apparatus in the government of Aceh, (3) internal control has an effect on performance of government apparatus in the government of Aceh, (4) apparatus commitment has an effect on the relationship between budget participation with performance of government apparatus in the government of Aceh, and (5) apparatus commitment has an effect on the relationship between internal control with performance of government apparatus in the government of Aceh.

A Study into the Effects of Internal Audit on the Financial Performance of Commercial Banks in Zambia (A case of Standard Chartered)

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Commercial banks play an important role in an economy by providing financial services. However, in the course of providing these financial services, banks face risks such as fraud that pose a threat to the financial performance of the bank ultimately affecting both shareholders and stakeholders. The internal audit is one of the functions that were created to help mitigate or prevent these risks. The purpose of this study was to determine the effects of internal audit on the financial performance of commercial banks in Zambia with Standard Chartered being the case study. The study had 3 specific objectives; to determine the relationship between internal audit and the financial performance of Standard Chartered, to determine the impact of internal controls on the financial performance of Standard Chartered and to determine the impact of internal audit independence on the financial performance of Standard Chartered. The study presented the theoretical and conceptual frameworks as part of the literature study, which focused on information that is relevant to the internal audit function and the financial performance of commercial banks. The sample population for the study was 156 respondents and the researcher used a questionnaire and interviews to collect data as this was the most appropriate tool given the time of 3 months to complete the research. The questionnaire administered to respondents used the five-point likert scale to rate the responses of the respondents. The researcher used the Statistical Package for Social Sciences (SPSS version 20) software to process and analyse quantitative data while qualitative data was analysed using the thematic analysis. The software was also used to ensure reliability and validity of the research findings. To make the findings easy to understand and interpret, the findings were presented using pie charts, bar charts and tables. Based on the findings, the study concluded that there is a strong positive relationship between internal audit and the financial performance of Standard Chartered. The findings also found that internal controls and internal audit independence have a strong positive impact on the financial performance of Standard Chartered. This research will aid in making sure shareholders and management are aware of the impact internal audit has on the financial performance of commercial banks due to its role as a control system put in place to safeguard interests of both shareholders and stakeholders. The researcher recommended that Standard Chartered must always make sure their internal control systems technology are up to date and that they must also train their internal audit staff regularly to enhance their informational and technical competency. The researcher then proposed what future researchers can research on with regards to this research topic.