SME Internal Control:How is compliance with COSO Framework?

SME Internal Control:How is compliance with COSO Framework?

SME, coffee shop, Internal Control, COSO Framework

Malang, East Java Indonesia, is a tourist city with natural beauty and a large variety of food and beverage industries, including Coffee Shops. The purpose of this study was to evaluate the compliance of the internal control implementation of the SMEs (Small Medium Enterprises) food and beverage based on the COSO Framework. This research is qualitative research with a case study method that uses components ofthe COSO Framework as basis analysis of four coffee shops in Malang City. The results show that there are differences between theory and practice in the field. Generally, among five components of the COSO Framework, the Control Activities component has not been considered important in internal control. Hence, there are some cases of irregularities that create or negligence in each coffee shop. It can be concluded that SME still need control over their business to eliminate fraud; therefore, separation of duties is required

Bimo Setyawan1, Nur Indah Riwajanti2, Kartika Dewi Sri Susilowati3

https://dinastipub.org/DIJEFA/article/view/865/564

State Polytechnic of Malang

05 May 2021

Bimo Setyawan

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English

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