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ANALYSIS OF INTERNAL CONTROL ON PAYROLL CYCLE BASED ON COSO FRAMEWORK AND THREE LINES OF DEFENSE MODEL CASE STUDY: UNIVERSITY A
Last modified: 2017-12-22
Abstract
This study aims to analyze whether existing controls have been able to overcome the threats that arise in the process of paying employes salaries of University A
and how the role of each lines of defense in the Three Lines of Defense Model at University A, in applying internal controls based on the COSO Framework.
The method in this research is using COSO Framework as a guide in applying internal control and using Three Lines Of Defense Model as reference in analyzing the role of each lines of defense that involved in internal control.
Internal control analysis in this study was conducted to analyze weaknesses in each lines of defense and control role over threats in the payment process of employee salaries University A,
and to provide suggestions for improving weaknesses in control and defense roles.
In this study, the data obtained through direct observation of every unit business that will be examined, examination of the business process flow and documents used and also studies literature.
The process of interviewing and questionnaires to the people who responsible for the part of the research such as the Directorate of Finance, SPI and SMR.
From the analysis of the control activities on the threats that existed in the salary payment process of University A employees, we find that currently University A already has control over existing threats from each sub process,
but it can be concluded that there are some threats that can’t be overcome with the control condition from each sub process.
Then, based on the analysis that has been done on the role of each side of the defense in applying the internal control component based on COSO on the payroll process,
we can conclude that each line of defense has not done its role optimally.
and how the role of each lines of defense in the Three Lines of Defense Model at University A, in applying internal controls based on the COSO Framework.
The method in this research is using COSO Framework as a guide in applying internal control and using Three Lines Of Defense Model as reference in analyzing the role of each lines of defense that involved in internal control.
Internal control analysis in this study was conducted to analyze weaknesses in each lines of defense and control role over threats in the payment process of employee salaries University A,
and to provide suggestions for improving weaknesses in control and defense roles.
In this study, the data obtained through direct observation of every unit business that will be examined, examination of the business process flow and documents used and also studies literature.
The process of interviewing and questionnaires to the people who responsible for the part of the research such as the Directorate of Finance, SPI and SMR.
From the analysis of the control activities on the threats that existed in the salary payment process of University A employees, we find that currently University A already has control over existing threats from each sub process,
but it can be concluded that there are some threats that can’t be overcome with the control condition from each sub process.
Then, based on the analysis that has been done on the role of each side of the defense in applying the internal control component based on COSO on the payroll process,
we can conclude that each line of defense has not done its role optimally.
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