Internal Control as a Fraud Prevention Tool

Oct 13, 2025 by miodeya.com 144 views

The Effect of Internal Control and Organizational Commitment on the Prevention of Goods Procurement Fraud at PT. Telkomsel Medan Branch

Introduction

In today's fast-paced business environment, companies are constantly seeking ways to prevent fraud and maintain their reputation. One of the most critical areas of concern is the procurement of goods, which is a process that involves significant financial transactions. Internal control and organizational commitment are two key factors that play a vital role in preventing goods procurement fraud. This study aims to analyze the effect of these two factors on the prevention of goods procurement fraud, with a focus on PT Telkomsel Medan Branch.

Internal Control as a Fraud Prevention Tool

Internal control is a set of systems, procedures, and policies designed to ensure that an organization can achieve its goals efficiently and effectively, while minimizing the possibility of fraud. In the context of procurement of goods, good internal control can include strict verification processes, separation of tasks, and the use of sophisticated information technology to monitor transactions. By implementing strong internal control, PT Telkomsel Medan Branch can increase transparency and accountability in each procurement process, thereby reducing opportunities for fraud.

Effective internal control systems can help prevent fraud by:

Verifying transactions: Ensuring that all transactions are properly verified and recorded to prevent errors or manipulation.
Separating tasks: Assigning different tasks to different individuals to prevent any one person from having too much control over the procurement process.
Using technology: Implementing sophisticated information technology systems to monitor transactions and detect any suspicious activity.

Organizational Commitment that Encourages Integrity

Organizational commitment is an encouragement that arises from employees to contribute positively to the company's goals and vision. In the context of fraud prevention, employees who have high commitment tend to be more obedient to the procedures and policies that have been set. They feel they have responsibility for the sustainability and reputation of the company. Thus, increasing organizational commitment at PT Telkomsel Medan Branch can contribute significantly in creating a culture that rejects all forms of fraud.

Highly committed employees are more likely to:

Follow procedures: Adhere to established procedures and policies to prevent fraud.
Maintain integrity: Demonstrate a strong sense of integrity and ethics in their work.
Report suspicious activity: Report any suspicious activity or behavior to prevent fraud.

Research Methodology

This study uses a survey method to collect data from PT Telkomsel Medan Branch employees who operate with technology-based information systems. With a total sample of 46 respondents, the data collected was analyzed using Statistical Product and Service Solution (SPSS) version 17.00. Through this approach, the results obtained can provide a clear picture of the relationship between internal control and organizational commitment to the prevention of fraud.

Research Results

The results showed that internal control had a significant positive influence on the prevention of goods procurement fraud. That is, the better the internal control applied, the lower the possibility of fraud. In addition, organizational commitment has also proven to have a positive effect on the prevention of fraud. High-committed employees will be more likely to follow the established procedures and maintain integrity in each transaction.

Conclusion

From the analysis conducted, it can be concluded that internal control and organizational commitment are two important elements that are interconnected in efforts to prevent the procurement of goods at PT Telkomsel Medan Branch. Therefore, companies are advised to continue to strengthen the internal control system and build a culture of commitment among employees. With these steps, it is expected that PT Telkomsel can minimize fraud risk and increase efficiency in the procurement of goods. Success in preventing fraud not only has a positive impact on the company, but also strengthens public confidence in organizational integrity.

Recommendations

Based on the findings of this study, the following recommendations are made:

Strengthen internal control systems: PT Telkomsel Medan Branch should continue to strengthen its internal control systems to prevent fraud.
Build a culture of commitment: The company should build a culture of commitment among employees to encourage them to contribute positively to the company's goals and vision.
Provide training and education: The company should provide training and education to employees on the importance of internal control and organizational commitment in preventing fraud.
Monitor and evaluate: The company should regularly monitor and evaluate its internal control systems and organizational commitment to ensure that they are effective in preventing fraud.
Frequently Asked Questions (FAQs) on Internal Control and Organizational Commitment in Preventing Goods Procurement Fraud

Q: What is internal control, and how does it relate to preventing goods procurement fraud?

A: Internal control is a set of systems, procedures, and policies designed to ensure that an organization can achieve its goals efficiently and effectively, while minimizing the possibility of fraud. In the context of procurement of goods, good internal control can include strict verification processes, separation of tasks, and the use of sophisticated information technology to monitor transactions.

Q: What are some effective internal control systems that can help prevent fraud?

A: Effective internal control systems can help prevent fraud by:

Verifying transactions: Ensuring that all transactions are properly verified and recorded to prevent errors or manipulation.
Separating tasks: Assigning different tasks to different individuals to prevent any one person from having too much control over the procurement process.
Using technology: Implementing sophisticated information technology systems to monitor transactions and detect any suspicious activity.

Q: What is organizational commitment, and how does it relate to preventing goods procurement fraud?

A: Organizational commitment is an encouragement that arises from employees to contribute positively to the company's goals and vision. In the context of fraud prevention, employees who have high commitment tend to be more obedient to the procedures and policies that have been set. They feel they have responsibility for the sustainability and reputation of the company.

Q: What are some characteristics of highly committed employees that can help prevent fraud?

A: Highly committed employees are more likely to:

Follow procedures: Adhere to established procedures and policies to prevent fraud.
Maintain integrity: Demonstrate a strong sense of integrity and ethics in their work.
Report suspicious activity: Report any suspicious activity or behavior to prevent fraud.

Q: How can companies strengthen their internal control systems and build a culture of commitment among employees?

A: Companies can strengthen their internal control systems and build a culture of commitment among employees by:

Providing training and education: Providing training and education to employees on the importance of internal control and organizational commitment in preventing fraud.
Monitoring and evaluating: Regularly monitoring and evaluating internal control systems and organizational commitment to ensure that they are effective in preventing fraud.
Encouraging open communication: Encouraging open communication among employees to report any suspicious activity or behavior.

Q: What are some benefits of implementing effective internal control systems and building a culture of commitment among employees?

A: Some benefits of implementing effective internal control systems and building a culture of commitment among employees include:

Reducing the risk of fraud: Implementing effective internal control systems and building a culture of commitment among employees can help reduce the risk of fraud.
Increasing efficiency: Effective internal control systems and a culture of commitment among employees can help increase efficiency in the procurement of goods.
Strengthening public confidence: Implementing effective internal control systems and building a culture of commitment among employees can help strengthen public confidence in organizational integrity.