An Internal Control Analysis of Credit Sales at Imported Meat Distributors in Cirebon Regency
DOI:
https://doi.org/10.55606/ijemr.v3i3.526Keywords:
Internal Control;, Credit Sales, COSO Framework, Risk Assessment, Accounting Information Systems, Credit Management, Control Environment,Abstract
This study analyzes the effectiveness of internal control over credit sales at an imported meat distributor in Cirebon, Indonesia, using the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework. The research aims to identify weaknesses in the current system and propose implementable solutions. Data were collected through field observations, interviews, and documentation analysis. The findings reveal that the company’s internal control does not yet align fully with the five COSO components—control environment, risk assessment, control activities, information and communication, and monitoring. Key issues include role overlaps, lack of formal credit policies, weak coordination, and informal communication methods. The absence of routine risk evaluations and inadequate credit monitoring further exacerbate inefficiencies. The study recommends organizational restructuring, development of a formal credit evaluation system, integration of a real-time accounting application, and the assignment of specialized staff for credit collection. These strategies are expected to strengthen internal control, reduce the risk of bad debts, and improve financial performance.
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