INTERNAL CONTROL SYSTEM AT PDAM KOTA PEKALONGAN (A CASE STUDY)

The concept of internal control is just as relevant to state owned company, as it is to profit seeking organization. This study was designed to evaluate the adequacy of internal control system in a regional owned company. The study was held at PDAM Kota Pekalongan, which is a regional owned company of water resources in a city located in Jawa Tengah region. The data were collected through various interview and observation and were analyzed by comparing them to the standards issued by COSO and Indonesian Government. The outcome of this study is that some control components of effective internal control systems are lacking in this company. The study ends with recommendations to improve the company�s internal control systems that can help the company to increase the effectiveness and efficiency of its business conducts