OPERATIONAL AUDIT ON CREDIT SALES

Transcription

1 OPERATIONAL AUDIT ON CREDIT SALES (CASE STUDY OF PT. BAHTERA WIRANIAGA INTERNUSA) THESIS Proposed as a requirement for obtaining Sarjana degree at Economy Education Level Strata-1 (Sarjana/Bachelor) by Cindy Margareth Arief Tanubrata Binus International Universitas Bina Nusantara Jakarta 2006 i

2 OPERATIONAL AUDIT ON CREDIT SALES (CASE STUDY OF PT. BAHTERA WIRANIAGA INTERNUSA) THESIS Prepared by: Cindy Margareth Arief Tanubrata Approved by: Supervisor Johan Halim, MBA Lecturer s Code: L1195 Binus International Universitas Bina Nusantara Jakarta 2006 ii

3 BINUS INTERNATIONAL UNIVERSITAS BINA NUSANTARA Accounting Sarjana Ekonomi Thesis Semester Odd 2006 OPERATIONAL AUDIT ON CREDIT SALES (STUDY CASE PT. BAHTERA WIRANIAGA INTERNUSA) Cindy Margareth Arief Tanubrata Abstract Objectives The writer performed an operational audit in order to evaluate and assess the effectiveness of BWI s credit sales operations for Pronas Corned Beef. Moreover, in performing the operational audit, the writer would be able to identify the control weaknesses of BWI s credit sales operations, and provide recommendations in minimizing BWI s control weaknesses and improving its credit sales operations. Method In assessing BWI s credit sales operations for Pronas Corned Beef, the writer performed an interview, observed on credit sales procedures, distributed a formal internal control questionnaire, and conducted a test of controls on supporting evidence. Results There are several control weaknesses in managing the credit sales transactions. The main weakness is that there is an absence of prenumbered sales documents in accepting customer orders, dispatching goods to customers and invoicing customers. This condition might influence the occurrence of fictitious customers, merchandise embezzlement, and recording fictitious sales transactions. Conclusion The implementation of a proper internal control system is important for a company in monitoring and controlling its business operations, and maintaining the available physical resources. Furthermore, the implementation of a proper internal control system would assist a company in achieving its objectives, and minimizing the risks of material misstatement on assets, manipulation, and corporate fraud. Key Words Audit, operational audit, internal control, credit sales transactions iii

4 TABLE OF CONTENTS Cover page Title page... i Certificate of Approval (Hardcover)...ii Abstract.....iii Table of Contents... iv-v Preface vi List of Tables.vii List of Figures viii Appendices... ix CHAPTER 1 INTRODUCTION 1.1 Background Scope Aims and Benefits Research Methodology Thesis Structure 5-7 CHAPTER 2 THEORETICAL FOUNDATION 2.1 Definition of Audit Objectives of Audit Types of Audit Operational Audit Definition of Operational Audit Objectives of Operational Audit Types of Operational Audit Approaches of Operational Audit Phases of Operational Audit Differences between Operational and Financial Statement Audits Internal Control Definition of Internal Control Objectives of Internal Control Components of Internal Control Relation between Operational Audit and Internal Control Overview of Sales Applicable Control Procedures on Credit Sales Operation Assessment of Control Risk on Credit Sales Transactions Types of Audit Sampling Types of Sampling Techniques iv

5 CHAPTER 3 COMPANY PROFILE 3.1 Company Background Type of Business Activities Organizational Structure Descriptions of Duties and Responsibilities Credit Sales Procedures CHAPTER 4 FINDINGS AND DISCUSSION 4.1 Findings Credit Sales Policy Internal Control on Sales Function Operational Audit of Credit Sales Operations Selecting an Auditee Planning the Operational Audit Performing the Operational Audit Reporting the Operational Audit CHAPTER 5 CONCLUSION AND RECOMMENDATION 5.1 Conclusion Recommendation REFERENCE CURRICULUM VITAE APPENDICES FOTOCOPY OF A REFERENCE LETTER FROM THE COMPANY v

6 PREFACE Praise to the LORD, the writer had accomplished the thesis entitled: Operational Audit on Credit Sales (Study Case PT. Bahtera Wiraniaga Internusa) in accordance to the appropriate thesis schedule. The purpose of writing this thesis is to fulfil the requirement for completing education level strata-1 from Universitas Bina Nusantara and obtaining a title of Sarjana Degree at Economy. For this opportunity, the writer would like to express a great appreciation to parties that had assissted the writer in completing this thesis. - Mr. Prof. Dr. Gerardus Polla, M.App.Sc. as the Rector of Universitas Bina Nusantara. - Mr. Minaldi Loeis, MSc. MM as the Director of BiNus International. - Ms. Diana Widyastuti, MLS as the Dean of Students (BiNus International). - Mr. Dezie Leonarda Warganegara, Ph.D as the Head of School of Accounting (BiNus International). - Mr. Johan Halim, MBA as thesis supervisor that had allocated his time, and provided valuable recommendations and corrections in arranging this particular thesis. - To all lecturers of BiNus International that had teached, distibuted their knolwedge and experience, and provided guidence for the writer in completing education level strata-1. - Mr. Dimyati Yesaya as the Finance and Accounting Director of PT. Bahtera Wiraniaga Internusa (BWI), which had permitted the writer to conduct a research. vi

7 - Mr. Bram Cristian as the Accounting Supervisor, which had assissted the writer in obtaining particular company data. - To all staffs of BWI that had assisted the writer in collecting valuable information or data for the completion of this thesis. - Beloved parents and brother, who always support me in accomplishing this thesis. Thank you for your prayers, and valuable advice for empowering the writer in overcoming any obstacles or challenges. - Albert, Alfri, Dewi, Emilia, Eric, Meriska, Rynda, Sarah, Yohana and all of my friends, which had supported the writer in completing this thesis. - To all of my friends from JESUS FOR YOUTH (JOY). Thank you for your prayers, and understanding for permitting the writer to be absence in several activities. - To all parties, that are directly and indirectly, had assisted the writer in competing this thesis. The writer considers that there are several weaknesses and, hence, the writer would appreciate any critics and recommendations for having a better understanding to the performance of operational audit. At the end, the writer expects this thesis would be valuable for BWI in improving its credit sales operations, and readers in having a preliminary understanding on the performance of operational audit. Jakarta, 19 Agustus 2006 Writer, (Cindy Margareth Arief Tanubrata) vii

8 LIST OF TABLES Table 2.1. Comparative Summary of Financial Statement and Operational Audit 20 Table 2.2. Control Risk Assessment Procedures on Credit Sales Transactions Table 3.1. Sales Area PT. Bahtera Wiraniaga Internusa 41 Table 4.1. Internal Control Questionnaire viii

9 LIST OF FIGURES Figure 2.1. Financial Statements vs. Operational Audit. 21 Figure 3.1. Organizational Structure of PT. Bahtera Wiraniaga Internusa 43 Figure 3.2. Flowchart Accepting Customer Orders.. 57 Figure 3.3. Flowchart Approving Credit 58 Figure 3.4. Flowchart Filling Orders. 59 Figure 3.5. Flowchart Dispatching Sales Orders 60 Figure 3.6. Flowchart Invoicing Customers (1). 61 Figure 3.7. Flowchart Invoicing Customers (2) 62 Figure 3.8. Flowchart Recording Credit Sales Transactions. 63 Figure 4.1. Audit Program for Tests of Control PT. Bahtera Wiraniaga Internusa ix

10 APPENDICES Appendix A. Delivery Order.. A1 Appendix B. Customer Invoice Type 1 (Sales).. A2 Observation on Credit Sales Procedures/AO-01. A3-A7 Verification on Credit sales Transactions Pronas Corned Beef/AO-02 A8 Sales Cut Off/AO-03.. A9 Examination Evidence on Credit Sales Transactions (1) / AO-04 A10 Examination Evidence on Credit Sales Transactions (2) / AO-04 A11 x