Internal Controls in the Sales Cycle to Minimize Risks (Case Study at PT XYZ)
- DOI
- 10.2991/apbec-18.2019.12How to use a DOI?
- Keywords
- Sales, Receivables, Internal Controls, Risk
- Abstract
Sales are a major source of corporate earnings. Improved sales are an important goal in supporting a company's operational processes. As a sales strategy, sales on credit is an option to increase the demand for a firm’s goods. However, offering credit can negatively impact a company's business if it is not properly managed. This study aims to analyze the sales business process and internal control system embedded in the sales cycle of PT XYZ, a newspaper publisher. The company’s largest asset is receivables that as of 31 December 2016, amounted to 50% of the company’s total assets. The company has a low rate of collectible receivables, with some long outstanding receivables for more than 10 years. Other problems faced by the company are operating losses and high sales return. This research is conducted by using a qualitative approach and descriptive analysis to examine the sales and components of internal control. Data is collected by interviewing key personnel, observation and examining documents. The result of this research is recommended actions for the improvement of internal controls of the sales cycle and a risk analysis design using risk calculations. This research is expected to enable the firm to take decisive action to face its significant risks.
- Copyright
- © 2019, 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 - Fitriyeni Oktavia AU - Bambang Pamungkas PY - 2019/07 DA - 2019/07 TI - Internal Controls in the Sales Cycle to Minimize Risks (Case Study at PT XYZ) BT - Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018) PB - Atlantis Press SP - 78 EP - 86 SN - 2352-5428 UR - https://doi.org/10.2991/apbec-18.2019.12 DO - 10.2991/apbec-18.2019.12 ID - Oktavia2019/07 ER -