Analysis of the Internal Control System on the Revenue Cycle of Lending at Rural Bank

Abstract

This research aim to determine whether internal control system of Rural Banks "X" is aligned with the elements of the COSO internal control structure. Data was collected by means interviewing and observing. The analysis was carried out by comparing the results of interviews and observations over the credit distribution income cycle to internal control framework according to COSO and the Otoritas Jasa Keuangan (OJK) Framework. Results of this study indicate that the internal control structure framework and OJK Framework has been implemented in the most of procedure of lending. This article proposes to identify lending risks periodically to ensure that controls are in place to address the identified risks.