Effectiveness of Internal Control in Payroll Accounting System within Public Sector Organizations
Keywords:
Internal Control, Payroll Accounting System, Public Sector Organizations, Financial AccountabilityAbstract
The effectiveness of internal control in the payroll accounting system is an important factor in ensuring accuracy, accountability, and reliability of financial information in public sector organizations. This study aims to analyze the implementation of internal control in the payroll accounting system within a local government institution. The research was conducted at the Department of Cooperatives, Small and Medium Enterprises, Industry, and Trade of Sumedang Regency. This study uses a qualitative descriptive approach with data collected through observation, interviews, and documentation. The analysis focuses on organizational structure, authorization procedures, payroll documents, and the separation of duties related to payroll processing. The results show that the payroll accounting system has been implemented properly and supported by adequate internal control elements, including clear functional responsibilities, proper authorization, and reliable recording procedures. However, several improvements are still needed to enhance efficiency and accuracy in payroll processing. The study concludes that effective internal control plays a significant role in maintaining financial discipline and supporting good governance in public sector organizations.
References
Agbenyo, W., Jiang, Y., & Cobblah, P. K. (2018). Assessment of internal control systems on financial reporting quality in public sector. International Journal of Economics and Finance, 10(11), 40–50.
https://doi.org/10.5539/ijef.v10n11p40
Ahmad, I. (2025). Government internal control system and financial performance in public organizations. Journal of Economics and Business Letters, 3(2), 55–66. https://doi.org/10.55681/jebl.v3i2.751
Akbar, A. (2025). Internal control and financial reporting quality in government institutions. Research Horizon Journal, 5(2), 120–131. https://doi.org/10.55681/rh.v5i2.500
Alzeban, A. (2019). The impact of internal audit and internal control on public sector performance. Journal of Accounting in Emerging Economies, 9(4), 571–589.
10.1057/s41599-024-03835-3
Aziz, M.A., Rahman, H.A., Alam, M., & Said, J. (2015). Enhancement of the Accountability of Public Sectors through Integrity System, Internal Control System and Leadership Practices: A Review Study. Procedia. Economics and finance, 28, 163-169.
DOI. 10.1016/S2212-5671(15)01096-5
Dewi, N. P. S., & Putri, I. G. A. M. A. D. (2020). Effect of internal control systems on financial accountability. International Research Journal of Management, IT & Social Sciences, 7(3), 123–132.
https://doi.org/10.21744/irjmis.v7n3.887
Ejoh, N., & Ejom, P. (2014). The Impact of Internal Control Activities on Financial Performance of Tertiary Institutions in Nigeria. Journal of Economics and Sustainable Development, 5, 133-143.
Formosa, F. (2024). Internal control and fraud prevention in public sector accounting. European Asian Journal of Management Research, 3(11), 11809–11818. https://doi.org/10.55927/eajmr.v3i11.11809
Hidayat, T., & Handayani, N. (2021). Internal control system and financial accountability in local government. Jurnal Akuntansi, 25(2), 267–283.
https://doi.org/10.24912/ja.v25i2.789
Kewo, C. L., & Afiah, N. N. (2017). Does quality of financial statement affected by internal control system? International Journal of Economics and Financial Issues, 7(2), 568–573.
https://doi.org/10.32479/ijefi.4906
Lubis, D. (2023). Internal control system and financial reporting quality in public sector organizations. Journal of Work Science, 2(5), 335–345. https://doi.org/10.58344/jws.v2i5.335
Mahama, M. (2016). Effect of internal control on financial performance in public organizations. International Journal of Accounting Research, 4(1), 1–6.
https://doi.org/10.4172/2472-114X.1000129
Mahmud, M. (2024). Public sector accounting and fraud prevention in government institutions. Journal of Finance and Business Development, 2(3), 145–156. https://doi.org/10.55927/jfbd.v2i3.193
Muda, I., Harahap, A. H., Ginting, S., Maksum, A., & Abubakar, E. (2018). Factors affecting financial reporting quality in government. International Journal of Civil Engineering and Technology, 9(9), 125–135.
https://doi.org/10.2139/ssrn.3311323
Nurillah, A. S., & Muid, D. (2014). Pengaruh kompetensi SDM terhadap kualitas laporan keuangan pemerintah. Diponegoro Journal of Accounting, 3(2), 1–13.
https://doi.org/10.14710/jab.v3i2.1024
OECD. (2023). Internal control and public sector financial management. OECD Public Governance Review. https://doi.org/10.1787/oecd.ic.2023
Peters, B. G. (2025). Public sector accounting and control mechanisms in local government. Public Management Review. https://doi.org/10.1080/09540962.2025.2529266
Putra, I. W. G. Y. D., & Rasmini, N. K. (2019). Internal control and accountability of government financial reporting. International Journal of Social Sciences and Humanities, 3(1), 45–56.
https://doi.org/10.29332/ijssh.v3n1.250
Putri, A. G., Rahman, H., & Yusuf, M. (2025). Internal control systems and financial accountability in public sector enterprises. Al-Kharaj: Journal of Islamic Economic and Business, 7(4), 8797–8810. https://doi.org/10.24256/kharaj.v7i4.8797
Rudiyanto, R. (2025). Internal control effectiveness and public accountability in government institutions. Owner: Riset dan Jurnal Akuntansi, 9(1), 2625–2636. https://doi.org/10.33395/owner.v9i1.2625
Sari, D., & Darmastuti, D. (2023). Internal control weaknesses and financial reporting quality in local government. Jurnal Akuntansi dan Auditing Indonesia, 27(1), 10–21. https://doi.org/10.20885/jaai.vol27.iss1.art10
Sari, R., & Setiawan, D. (2020). Internal control and financial statement quality in public sector. Jurnal Akuntansi dan Keuangan Indonesia, 17(1), 1–15.
https://doi.org/10.21002/jaki.2020.01
Siahay, A. (2023). Public sector accounting and accountability in government financial management. Journal of Economic Research, 5(2), 1504–1515. https://doi.org/10.37531/jer.v5i2.1504
Siswantoro, D. (2025). Evaluation of internal control systems in government institutions. Eduvest: Journal of Universal Studies, 5(1), 51353–51365. https://doi.org/10.59188/eduvest.v5i1.51353
Sonjaya, Y. (2025). Internal control and financial accountability in local government organizations. Ecojoin: Journal of Economics and Accounting, 5(2), 2927–2938. https://doi.org/10.37899/eja.v5i2.2927
Sulistyowati, W., & Supriyanto, S. (2021). Accounting information systems and internal control effectiveness. Jurnal Akuntansi Multiparadigma, 12(2), 367–382.
https://doi.org/10.21776/ub.jamal.2021.12.2.21
The Influence of Internal Control Quality on Corporate Financial Performance: An Empirical Analysis based on Panel Quantile Regression Model. (2023). EkBis: Jurnal Ekonomi Dan Bisnis, 7(2), 140-154. https://doi.org/10.14421/EkBis.2023.7.2.2118
Widyaningsih, A. (2015). Internal control system in government institutions. Procedia Economics and Finance, 31, 568–573.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 NASTITI RIZKY, Ayi Srie Yuniawati (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
