ISSN: 2225-8329
Open access
This research aims to analyze the implementation of internal control in MSMEs using the COSO framework. Based on the COSO concept, internal control provides adequate assurance regarding the achievement of organizational goals in operations, reporting and compliance aspects. Research was conducted on fifteen MSMEs that produce furniture in North Sulawesi. The research method uses qualitative methods. Data collection was carried out through interviews with MSME owners and observation of company documents. Data analysis uses three aspects of COSO's internal control objectives, namely operations, reporting, and compliance. Data analysis stages include data reduction, data presentation, and drawing conclusions. The research results show that the internal control implemented by MSMEs in North Sulawesi, especially in the furniture production sector, is inadequate because there are still many weaknesses, especially in the aspects of financial management, reporting, and compliance with tax regulations. This has an impact on not achieving the reporting and compliance objectives of MSMEs. In order to achieve this goal, MSMEs can use financial recording applications to manage their finances so that the weaknesses in internal control can be overcome. The author's motivation for conducting this research is to provide awarenes. With this research, it is hoped that MSME business owner will be able to apply good internal control principles cos and help MSME business owner to implement appropriate and ideal internal controls for furniture production businessesmpared to MSMEs which are managed without knowledge of the foundations of the internal control system. The contribution of this research can not only be used for MSMEs in the field of furniture production, but also for other MSMEs that are facing problems in business management, inability to manage risk and safeguarding assets. In the end, there will be a difference between MSMEs that are aware and implement good internal controls and MSMEs that do not implement internal controls. MSMEs that have implemented effective internal controls will be able to withstand business competition and be able to maintain business continuity.
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