Evaluation of Control Activities in the Inventory Purchasing System (Case Study at PT. GSI)

Abstract

Purchasing inventory is a critical aspect of the production process in any company. PT GSI conducts purchasing from suppliers to meet its production needs. This research aims to evaluate the control activities of the inventory purchasing system implemented at PT GSI. Using a qualitative approach, interviews were conducted with relevant departments to gather data. The study evaluates the system based on the COSO framework, which revealed several inconsistencies. A significant finding is that there is no adequate separation of duties at PT GSI, with administrative and financial tasks often handled by the same staff. Additionally, there is a lack of access control to the system, as tasks are still performed manually without sufficient safeguards. The research suggests that improvements are needed in terms of task separation and system access control to align with COSO standards. Implementing these improvements would help PT GSI minimize risks such as fraud and operational inefficiencies. Moreover, operational control would be better facilitated, ensuring smoother processes without interruptions. This study emphasizes the importance of internal control systems, especially in purchasing operations, to prevent potential financial and reputational losses. Ensuring compliance with COSO and other industry standards would enhance the company's overall operational effectiveness.