EVALUASI IMPLEMENTASI SARBANES OXLEY ACT (SOA) SEKSI 404 PADA STRUKTUR PENGENDALIAN INTERNAL PT TELEKOMUNIKASI INDONESIA TBK

• Main Authors: , Vina Dwipita Putri, SE., , Drs. Haryono, M.Com.
• Format: Theses and Dissertations NonPeerReviewed
• Published: [Yogyakarta] : Universitas Gadjah Mada 2011
• Subjects: ETD
• Online Access: https://repository.ugm.ac.id/88464/; http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=50213
• Institution: Universitas Gadjah Mada

Section 404 of Sarbanes Oxley Act (SOA) is a regulation that requires the corporate management making annual report on internal control. External auditor is required to give opinion about assessment on effectiveness of internal control over annual report submitted by management. In practice, PT Telkom has several weaknesses in internal control over annual report in financial reporting cycle used to arrange and present the annual report in accordance with Generally Accepted Accounting Principle and Generally Accepted Auditing Standard. Therefore, this study is to evaluate the implementation of Section 404 of SOA to the structure of internal control in Telekomunikasi Indonesia, Inc. The study used a qualitative method with a case study approach. Primary data were obtained using observation and interview techniques, while secondary data were obtained using documentation technique. Data obtained were analyzed using a qualitative technique. Result of the study indicates that Telkom, Inc. has tried to implement the SOA of Section 404 in internal control structure through six business processes of financial reporting. The main reasons of implementation are to improve corporate governance until much higher levels of performance, reputation and profitability, as well as to fulfill requirements determined in order to be still listed in New York Stock Exchange, United States. Six cycles of financial reporting in Telkom Inc. were Accounting Policy and Guide, General Ledger Maintenance, Closing, Con-solidation, Auditor Adjustment and Reporting and Review. Generally, the cycles of financial reporting after the implementation of SOA indicated much better, transparent, and accountable business processes, in turn increasing good corporate governance. Meanwhile, based on COSO criteria, it can be said that the imple-menttation of SOA was ineffective because many material weaknesses were still found in financial reporting, particularly at period of 2003-2005. The weaknesses could be largely seen in the five components of COSO, i.e. Control Environment, Risk Assessment, Control Activity, Information and Communication, and Moni-toring. Most of the material weaknesses in financial reporting tried to be improved by the management in the 2006 Annual Report, but could only be implemented in a more entire manner with a relatively high level of effectiveness on 2007.