Analysis of Internal Control of Merchandise in Edwi Dolopo Store to Improve Business Effectiveness

Abstract

Internal inventory control is carried out using security measures to avoid theft, errors, or other actions. The existence of an internal control system in the company can create an excellent organizational structure. To create reasonable internal control, the company must fulfill the elements of internal inventory control. In this study, 3 of the 5 elements of internal control were taken, namely internal control procedures for receiving and storing, an organizational structure that strictly separates functional responsibilities and healthy practices in carrying out tasks, and each organizational unit. At Toko Edwi there is a problem with the dual function of receiving and storing functions into one accounting function. The purpose of this study is to find out how the internal control procedures for receiving and storing merchandise inventory at the Edwi Store, how the implementation of internal control over the organizational structure that separates functional responsibilities explicitly on the merchandise inventory at the Edwi shop, how to implement internal control over practices healthy in carrying out the duties and functions of each organizational unit at the Edwi Store. Using qualitative research methods and data collection techniques in the form of interviews, observation, and documentation. The results of this study indicate that Toko Edwi has carried out internal control procedures for proper receipt and storage of merchandise. However, internal control over the organizational structure that separates functional responsibilities has not been strictly implemented. It still concurrently holds the duties of the receiving and storage functions into one accounting function. Internal control of healthy practices in carrying out the duties and functions of each organizational unit is also not appropriately implemented.