The Implementation of Payroll Accounting System as an Effort to Improve the System of Internal Control (a Study at Pdam Kota Malang)

This research aims to determine the implementation of payroll accounting system in PDAM Kota Malang as an effort to improve the internal control system and to provide the alternative problem solving if obstacles related to the system exists. Using descriptive method, the researcher obtained relevant data by using interview and documentation. The result shows that the system is well-implemented and it supports the internal control. It is evidenced by the involvement of related functions in the processing the payroll effectively. Also, the authorization of every job is clear and following the procedure. This study suggests the company to add more specific information related to income tax discounted from the employees' take home pays. This research also recommends the company to apply more complete flowchart of payroll system