THE IMPORTANCE OF REPORTING THE INTERNAL CONTROL SYSTEM IN THE ANNUAL REPORTS OF PUBLIC COMPANIES IN INDONESIA

Abstract

The background of this research is the phenomenon related to the practice of disclosure of internal control systems by public companies in Indonesia. Although regulations are governing the presentation of internal control information in the financial statements, there are no detailed arrangements regarding the format and content. This research is part of a series of studies aimed at formulating the presentation of internal control systems by public companies in Indonesia. Therefore in this study, the expected result is to get an overview of the importance of internal control information in the annual report by various interested parties. Data collection was carried out by survey using a questionnaire. The research subjects are accountants, auditors, and report users, where the entire group is considered to have an association with internal control information on the company's financial statements. The sample selection for this study was made by snowball sampling. Data dissemination was carried out from March 2019 to June 2019. The results of the data collection obtained 127 responses. Analysis using the Kruskal Wallis Test found that all groups had the same view about the importance of presenting internal control system information in the company's annual report.