Internal control implementation in mitigating significant fraud risk to control sales

Abstract

The reason behind this study is the fact that company faces more and more competition in this ASEAN Economic Community Era. The company have to achieve and maintain their efficiency to win the competition. Then, the purpose of this research is to identify whether there is potential fraud risk in PT. PCPT, and how to mitigate significant fraud risk to make the company still in their efficiency. The method used in this research is analytical descriptive, whereas this method show a measurement and description about the reality of object which is being research. Data collection technique uses inquiry, questionnaire, and observation. Analysis will be based on comparison of these two to find out how internal control can solve potential significant fraud risk. The paper describe there are three potential risk fraud, namely (1) cash bribery by Salesman in collecting accounts receivable; (2) material bribery by plant manager; and (3) sales managers will increase sales volume by treat the sales of next period became this period. All potential fraud can be solved by internal control. Then, all activities in sales cycle become more effectiveness and efficient, and in other words sales cycle well controlled; and can be used as sales accountability to the users.