Evaluation of The Implementation of The Accounts Receivable Internal Control System At PT. Mandiri Tunas Finance Cirebon Branch

Abstract

Sales are one of the important aspects for a company in carrying out its business to generate profit. Credit sales do not allow the company to receive immediate cash inflows but can give rise to accounts receivable from customers. Poor management of receivables will directly harm the company. Therefore, an internal control system for receivables is needed to reduce the possibility of fraud or waste that may harm the company. PT. Mandiri Tunas Finance Cirebon Branch implements a receivables system outlined in the Company’s Standard Operating Procedures. These Standard Operating Procedures regulate, among other things, the process of credit sales and the proper management to be carried out. The purpose of this study is to evaluate and identify how the internal control system of receivables is implemented at PT. Mandiri Tunas Finance Cirebon Branch. Data collection techniques in this research were conducted through observation, interviews, and documentation, without using statistical formulas. Data processing and analysis were carried out using qualitative data, emphasizing direct observation. Based on the evaluation of the research results, it shows that the internal control system for accounts receivable at PT. Mandiri Tunas Finance Cirebon Branch has been running well. The company’s management has applied the basic concepts and principles of internal control according to the Committee of Sponsoring Organizations (COSO) framework. However, some improvements are still needed in the debtor receivable collection procedures