Analyzing the Implementation of Raw Material Inventory Procedure in Supporting the Effectiveness of Internal Control (Study at Pg Ngadiredjo Kras – Kediri)

Raw material inventory procedure is critical to maintain accuracy, reliable numbers for operation. Internal control on raw material inventory procedure is provided to ensure company has sufficient resources to meet customers' needs without having too many goods. Physical count of raw material inventory is generally taken prior to issuance of balance sheet. The problems of study are: how is the implementation of raw material inventory procedure that has been applied by PG Ngadiredjo, how is the implementation of raw material inventory procedure in supporting the effectiveness of internal control that is conducted by PG Ngadiredjo. Type of research is descriptive research with case study approach. Result of research that implementation of raw material inventory procedure in supporting the effectiveness of internal control is good. But there are lacks that must be improved such: picture of effective wide and location sketch should be authorized by manager of quality control department, check sheet, felling schedule, instruction letter of felling and shipping, planning of cost estimation should be authorized by manager of plants department, contract agreement of sugarcane milling is authorized by chairman of KPTR to assure the reliable document and put functionary from quality control department to be placed in receiving post