Evaluating Cash Disbursement Internal Controls Through the COSO 2013 Lens
DOI:
https://doi.org/10.55606/ijemr.v5i2.775Keywords:
Accounting Information System, Cash Disbursement, COSO 2013, Internal Control, ManufacturingAbstract
This study aims to analyze cash disbursement systems and procedures and evaluate the effectiveness of internal controls using the COSO 2013 framework. The research employed a descriptive qualitative approach with a single case study strategy. Data collection was conducted through semi-structured interviews with finance managers, accounting staff, and cashiers, direct observation of cash disbursement processes, and document analysis including SOPs and transaction forms. Data analysis adopted the interactive model of Miles, Huberman, and Saldaña comprising data condensation, data display, and conclusion drawing. Data validity was ensured through source and method triangulation. Results indicate an overall internal control system effectiveness of 56%. The information and communication component achieved the highest effectiveness (100%), while risk assessment was the weakest component (0%). Critical findings identified the dual functions of authorization and cash custody performed by the cashier. This study recommends developing formal risk assessment documentation, segregating cashier functions, periodic SOP updates, and implementing technology-based monitoring systems. The research implications provide theoretical contributions to internal control literature in Indonesian manufacturing industries and practical contributions through cash disbursement system improvement guidelines.
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