The real situation of construction company PT XYZ based on the internal audit report shows that there are some unusual transactions related to cash disbursement cycle. This indicates that the company needs an adequate Internal Control System to provide assurance in cash disbursement transactions so that reports on cash disbursements can be fairly presented. Furthermore, if internal control is properly designed and implemented, it can prevent and detect fraud which may harm the company. This research aims to evaluate and propose improvement of internal control system over the cash disbursement cycle of PT XYZ by using the principles of COSO framework 2013. This research is a case study research using descriptive qualitative approach by observing the object of research and interviewing to the senior personnel of PT XYZ. The results show that there are still some weaknesses in the internal control system over cash disbursement cycle of the company. In addition, this research also conducts self control assessment and fraud analysis to determine the appropriate and effective internal control in the cash disbursement cycle.

Keywords:

Fraud; Internal control system; cash disbursement