Universitas Indonesia Conferences, Asia Pacific Business and Economics Conference

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INTERNAL CONTROL ON SALES CYCLE IN MINIMIZING SALES RISKS (CASE STUDY AT PT XYZ)
Fitriyeni Oktavia

Last modified: 2017-12-22

Abstract


Sales are a major source of corporate earnings. It becomes an important goal for the company's operational processes. As one of sale strategies, sales on credit become an option to increase demand for goods to sell. However, it has negative impact on the company's business if it is not properly managed. This study aims to analyze the sales business process and internal control system embedded on the sales cycle of PT XYZ. The main business activity of company is selling newspaper. The company has the largest assets on the receivables amounted to 50% of the company’s total assets as of 31 December 2016. The company has low rate of collectible receivable with long outstanding receivable for more than 10 years. Other problems faced by the company is operating loss and high sales return. This research is conducted by using qualitative approach and descriptive analysis by analyzing the sales and components of internal control. Data is collected by interviewing the key personnel, doing observation and performing walkthrough documents. The result of this research is the recommendation actions for the improvement of internal control on sales cycle and provide a risk analysis design using risk calculations. This research is expected to enable the firm to take decisive action for the significant risks.

 

Keyword: Sales, Receivables, Internal Control, Risk

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