Implementing integrated internal control life cycle at telecom company

Internal control is necessary to avoid fraudulent practices that occurred several times in the institutions, both domestic and abroad. The fraudulent practices not only make the image of the institution to be contaminated but also detrimental to stakeholders. Many institutions implementing controls for business processes that considered significant, but they neglected to monitor and update it every time there is a change in the business process. As a result, the control is no longer effective in minimizing the risk of fraud and security breaches. In this case, we explore the implementation of internal controls conducted by Company Y, the telecommunications (telecom) industry in Indonesia. They adopted the rules in the Sarbanes Oxley Act and COSO in the design of internal control life cycle in an integrated manner involving multiple parties. The internal control life cycle is similar to that applied in the system development life cycle, starting from design, implementation, and evaluation. However, the practice of monitoring cycle control in business processes is quite unique as it is adapted to the organizational culture. Since implementing this system, Company Y no longer obtains material weakness findings for control design.