A STUDY OF COSO COMPLIANCE FRAMEWORK TO ACHIEVE EFECTIVENESS OF INTERNAL CONTROL SYSTEM (CASE STUDY: THREE UNITS IN THE ORGANIZATION OF ENERGI UTAMA)

• Main Author: KURNIASIH (NIM 29316015), NIA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29615
• Institution: Institut Teknologi Bandung

In achieving the effectiveness, efficiency, transparency, and accountable state financial management, Chief of Institution must execute control on state activity performance and control in order to attain effectiveness, financial report reliability, state asset security, and obedience to legislation and regulation. <br /> <br /> Unfortunately, internal control system in receivable and its bad debt as institution asset were found deficiency as stated in LHP Board of Audit from year 2012 to year 2016. In order to attain the first purposes of this study is to : 1) To find out factors affected to the effectiveness of internal control system. 2) To analyze the factors whether they could achieve or not the effectiveness and how far they could affect it, and 3) To propose the strength of internal system strategy. <br /> <br /> The problem to be analyzed in this study herewith was internal control system as stated in the final project title above, however due to very broad internal control scope, therefore writer only focused on bad debt internal control system deficiency as the study case happened accordingly. <br /> <br /> Data used in this study was secondary data and primary data. The first used Organization of Energi Utama five years audited financial statement and financial statement note also other related reports. The latter used Coso compliance framework as guidance to form 34 questions and collected 51 data respondents to analyze. <br /> <br /> The methodology used here was Coso compliance framework version year 2013, horizontal analysis, aging analysis, statistical analysis - descriptive test , data quality testing, and classical assumption testing –, and the last QSPM analysis. <br /> <br /> The findings of the research showed that: 1) Based on horizontal analysis result indicated that averagely bad debt value in 3 units within Organization of Energi Utama was very high. 2) Aging analysis result indicated that the higher bad debt also the higher its age in those 3 units . However these analysis had not illustrated overall bad debt deficiency internal control. Therefore statistic analysis was further executed using principles and points of focus of COSO Internal Control Framework inwhich the relevant points of focus against with internal and external issues in the 3 units within Organization of Energi Utama were used furtherly as statement or questions basis analysis tool. The five (5) principles or dimentions were control environment, risk assessment, control activity, information and communication also monitoring activity meanwhile the relevant points of focus used with the issues were 29 points of focus as statement or questions basis. 3) Statistic analysis result of R2 test indicated that the effectiveness of internal control system was described 30,8% by the fifth variable independent, and the rest as much as 69,2% was described by outside this research. F test statistic result indicated that the fifth variables simultenously affected toward tied or dependent variabel of internal control system effectiveness. T test result analysis indicated that partially the average of each those five variables had no effect toward tied or dependent variable of internal control system effectivenss except information and communication variable. From multiple linear regression analysis indicated that when X variables or independent variable were assumed to be constant so that the value of bad debt internal control system effectiveness was only as much as 1,758%, and those fifth independent variables had high correlation toward tied or dependent variable. 4) Strategy strengthen result was to execute internal control system increase strategy with combination of internal strength and external opportunity with the highest of total attractiveness score was sebesar 2,69. <br />