The Effectiveness of Internal Control over Lease Accounting: Case Study of PSAK 116 Lease
Abstract
The objective of this study is to evaluate the internal control procedures implemented by PT ABC in relation to PSAK 116: Lease, with a focus on completeness and accuracy as outlined by the COSO framework and the Three Lines Model. According to the external auditor's examination, PT ABC has faced deficiencies in Internal Control Over Financial Reporting, particularly regarding the completeness and accuracy of lease recording for two reporting periods. Effective remediation efforts have not been found, which poses a risk to the reliability of the financial report. This study employs a descriptive qualitative analysis method to gather direct insights from the management perspective. The findings suggest that key factors in enhancing internal control deficiencies include monitoring and evaluation of the effectiveness of internal control and strengthening the internal audit function. Additionally, fostering interaction, communication, and collaboration among management and internal functions is crucial for establishing effective internal control.
Keywords: Internal Control; Lease Accounting; Control Deficiency, Three Line Model.
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References
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Fenelon, M., van Doorn, J., & Scholten, W. (2024). Crossing the lines a human approach to improving the effectiveness of the three lines model in practice. Journal of Financial Regulation and Compliance. https://doi.org/10.1108/JFRC-09-2023-0150
Hall, Steven and Liebenberg, Linda .(2024). Qualitative Description as an Introductory Method to Qualitative Research for Master’s-Level Students and Research Trainees.https://journals.sagepub.com/doi/epub/10.1177/16094069241242264
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Ikatan Akuntan Indonesia (IAI). (2019). Pernyataan Standar Akuntansi Keuangan (PSAK) No 116. Jakarta.IAI.
IndoTelko (2019). Kisah Telkom terapkan PSAK 71, 72, dan 73. https://www.indotelko.com/read/1557446052/kisah-telkom-73
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Kontan. (2019). Indosat (ISAT) jual 3.100 menara ke Mitratel dan Protelindo, begini penilaian Moody's. https://amp.kontan.co.id/news/ indosat-isat-jual-3100-menara-ke-mitratel-dan-protelindo-begini-penilaian-moodys
Lee, B. and Saunders, M. (2017) Conducting Case Study Research for Business and Management Students. 1st edn. SAGE Publications. https://www.perlego.com/book/1431360/conducting-case-study-research-for-business-and-management-students-pdf.
Lestarini, Ade Hapsani. (2019). Penerapan PSAK Baru Akan Memengaruhi Laporan Keuangan Emiten. https://www.medcom.id/ekonomi/mikro/VNxqPAyb-penerapan-psak-baru-akan-memengaruhi-laporan-keuangan-emiten
Myers, M. (2019). Qualitative Research in Business and Management. 3rd edn. SAGE Publications. https://www.perlego.com/book/1431616/-qualitative-research -in-business-and-management-pdf.
Nalukenge, I., Nkundabanyanga, S. K., & Ntayi, J. M. (2018). Corporate governance, ethics, internal controls and compliance with IFRS. Journal of Financial Reporting and Accounting, 16(4), 764–786. https://doi.org/10.1108/JFRA-08-2017-0064
Narimawati, U. (2008). Metodologi Penelitian Kualitatif dan Kuantitatif, Teori dan Aplikasi. Bandung: Agung Media,9.
Paramitha, A., Sari, R., & Nurcholis, Kgs. M. (2024). Pengaruh Sistem Informasi Akuntansi dan Pengendalian Internal Terhadap Kualitas Laporan Keuangan. https://doi.org/10.47065/jtear.v4i3.1190.
PT ABC. (2021). Kebijakan Internal Perusahaan Terkait Dengan Manajemen Risiko. Jakarta: PT ABC.
PT ABC. (2023). Laporan Tahunan PT ABC Tahun 2023. Jakarta: PT ABC.
PT ABC. (2021). Manajemen Risiko Perusahaan. Jakarta: PT ABC.
PT ABC. (2023). Standard Operating Procedures Keuangan. Jakarta: PT ABC.
PT ABC. (2023). Pedoman Penerapan Kebijakan Akuntansi Terkait Aktivitas Bisnis Dan Operasional Di Perseroan. Jakarta: PT ABC.
Public Company Accounting Oversight Board (PCAOB). (2002). Sarbanes Oxley Act of 2002.
Putri, N. W. A. & Suartana, I. W. (2022). Faktor-Faktor yang Mempengaruhi Kecenderungan Kecurangan Akuntansi Pada LPD di Kabupaten Badung: Peran Keefektifan Pengendalian Internal. E-Jurnal Akuntansi, 32(1), 1-16.
Saumi, Annisa Kurniasari. (2022). XL Axiata EXCL Jual 859 Menara Ke Edotco Rp750 Miliar. https://market.bisnis.com/read/20220227/192/1505313/xl-axiata-excl- jual-859-menara-ke-edotco-rp750-miliar.
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Simons, Robert. (2014). Performance Measurement and Control Systems for Implementing Strategy: Text and Cases, First Edition. Published by Pearson Prentice Hall.
Sugiyono. (2013). Metode Penelitian Kuantitatif Kualitatif dan R&D. Bandung: Alfabeta.
Soraya, Tara Farahdiba (2022). Analisis Penyesuaian Proses Bisnis Pasca Implementasi PSAK 73 Sewa: Studi Kasus pada PT XYZ. Fakultas Ekonomi dan Bisnis Universitas Indonesia. https://lib.ui.ac.id/m/detail.jsp?id=9999920519160 &lokasi=lokal#
The Institute of Risk Management (2012). Risk Culture Resources for Practioners.
The Institute of Internal Auditors. (2020). The IIA’s Three Lines Model An Update of Three Lines of Defense. https://www.theiia.org/globalassets/documents/ resources/the-iias-three-lines-model-an-update-of-the-three-lines-of-defense-july-2020/three-lines-model-updated-english.pdf.
Thompson, C. and Hopkin, P. (2021). Fundamentals of Risk Management. 6th edn. Kogan Page. https://www.perlego.com/book/310447
Utami, E. R., Sumiyana, S., Mustakini, J. H., & Barokah, Z. (2024). The IFRS 16 implementation in Asia-Pacific countries: enhancing asset pronouncements or opaque information’s conveyance. Accounting Research Journal, 37(1), 19–38. https://doi.org/10.1108/ARJ-04-2023-0115
Yin, Robert K (2018). Case study research and applications. Sixth edition. SAGE Publications.
Published
2025-01-06
How to Cite
ALEXANDER, Ivan; MITA, Aria Farah.
The Effectiveness of Internal Control over Lease Accounting: Case Study of PSAK 116 Lease.
E-Jurnal Akuntansi, [S.l.], v. 35, n. 4, jan. 2025.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/122561>. Date accessed: 30 apr. 2025.
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