Proceedings of the 1st International Conference on Intellectuals' Global Responsibility (ICIGR 2017)

Internal Control Implementation in Mitigating Significant Fraud Risk to Control Sales

Authors
Elizabeth Tiur Manurung, Greata Octo
Corresponding Author
Elizabeth Tiur Manurung
Available Online January 2018.
DOI
10.2991/icigr-17.2018.68How to use a DOI?
Keywords
fraud risk, fraud risk register, fraud risk assessment, internal control, misappropriation of assets, fraudulent of financial statement
Abstract

The reason behind this study is the fact that company faces more and more competition in this ASEAN Economic Community Era. The company have to achieve and maintain their efficiency to win the competition. Then, the purpose of this research is to identify whether there is potential fraud risk in PT. PCPT, and how to mitigate significant fraud risk to make the company still in their efficiency. The method used in this research is analytical descriptive, whereas this method show a measurement and description about the reality of object which is being research. Data collection technique uses inquiry, questionnaire, and observation. Analysis will be based on comparison of these two to find out how internal control can solve potential significant fraud risk. The paper describe there are three potential risk fraud, namely (1) cash bribery by Salesman in collecting accounts receivable; (2) material bribery by plant manager; and (3) sales managers will increase sales volume by treat the sales of next period became this period. All potential fraud can be solved by internal control. Then, all activities in sales cycle become more effectiveness and efficient, and in other words sales cycle well controlled; and can be used as sales accountability to the users.

Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 1st International Conference on Intellectuals' Global Responsibility (ICIGR 2017)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
January 2018
ISBN
978-94-6252-459-0
ISSN
2352-5398
DOI
10.2991/icigr-17.2018.68How to use a DOI?
Copyright
© 2018, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Elizabeth Tiur Manurung
AU  - Greata Octo
PY  - 2018/01
DA  - 2018/01
TI  - Internal Control Implementation in Mitigating Significant Fraud Risk to Control Sales
BT  - Proceedings of the 1st International Conference on Intellectuals' Global Responsibility (ICIGR 2017)
PB  - Atlantis Press
SP  - 283
EP  - 285
SN  - 2352-5398
UR  - https://doi.org/10.2991/icigr-17.2018.68
DO  - 10.2991/icigr-17.2018.68
ID  - Manurung2018/01
ER  -