[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/91261.html
   My bibliography  Save this paper

Fixed Sample Size as an Internal Control

Author

Listed:
  • Meirini, Dianita
  • Andari, Atik Tri
  • Aalin, Elmi Rakhma
Abstract
This study aims to analyze the effectiveness of internal control on two existing Community Banks in Tulungagung. According to Bank Indonesia rank, Tulungagung occupies the 1st position of the highest NPL in 2016. The effectiveness analysis of internal control is performed on the second Community Bank crediting system that includes qualitative and quantitative aspects analysis. Qualitative aspect analysis is based on Audit Standard applicable in Indonesia (AS) Section 319 Consideration of Internal Control in Audit of Financial Statements paragraph 07. Quantitative aspect analysis using Fixed Sample Size with a 95% confidence level and fault tolerance / DUPL (Desired Upper Precision Limit) = 5%. The result of the qualitative aspect shows the internal control system in both Community Banks is effective. It’s based on conformity between AS Section 319 and its implementation on both Community Bank. Total 20 questions for conformity analysis, 1st Community Bank for the next called BPR A is 80% appropriate, 2nd Community Bank for the next called BPR B is 60% appropriate. The rest questions are used as an attribute on quantitative analysis. The result of the quantitative aspect shows the internal control system in both Community Banks is not effective. This is because the AUPL (Achieved Upper Precision Limit) from three attribute samples analyzed exceed specified DUPL, that is: a) Authorization of credit approval documents AUPL = 18%, b) Completeness of supporting documents attached AUPL = 28%, and c) Verification of transaction correctness and correctness of ceiling calculation AUPL credit = 29%.

Suggested Citation

  • Meirini, Dianita & Andari, Atik Tri & Aalin, Elmi Rakhma, 2019. "Fixed Sample Size as an Internal Control," MPRA Paper 91261, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:91261
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/91261/1/MPRA_paper_91261.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    internal control; mixed method; fixed sample size;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:91261. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.