Internal Control over Financial Reporting in Lease Cycles under SOX 404
DOI:
https://doi.org/10.59261/bustechno.v7i4.792Keywords:
Control Deficiency, ICoFR, Internal Control, Lease Accounting, Sarbanes-Oxley ActAbstract
Background: IFRS 16 and its Indonesian adoption through PSAK 73 bring most leases onto the statement of financial position, increasing the importance of reliable contract data and timely control execution in capital-intensive entities.
Objective: This study examines the design and operating effectiveness of internal control over financial reporting (ICoFR) in the lease transaction cycle of a dual-listed infrastructure enterprise during the post-remediation stabilization phase.
Methods: A descriptive qualitative single instrumental case study design was applied using a top-down, risk-based approach derived from PCAOB AS 2201. Evidence was triangulated through semi-structured interviews with six functionally diverse informants, guided observation, and inspection of five key control working papers covering 2023–2026.
Results: All five key controls were adequately designed. However, operating effectiveness testing identified a control deficiency involving delayed lease modification updates and inconsistent data input by field business units. The deficiency did not escalate to a significant deficiency or material weakness because the K-02 compensating control consistently detected and corrected potential misstatements before the financial statements were issued.
Conclusion: Reliable ICoFR in a decentralized lease cycle depends on both sound control design and timely first-line risk ownership. The findings support stronger data standardization, accountability for contract-change reporting, and proportionate, sustainable automation of upstream contract administration.
References
Alexander, I. (2025). Evaluasi Pengendalian Internal Dalam Penerapan PSAK 116 Sewa Sebagai Mitigasi Risiko Salah Saji: Studi Kasus Pada PT ABC. https://psb.feb.ui.ac.id/index.php?id=99879&keywords=&p=show_detail
Amarullah, K. (2025). Pemetaan Literatur Ilmiah Mengenai Internal Control over Financial Reporting (ICOFR): Pendekatan Bibliometrik Berbasis Database Scopus. EKOMA: Jurnal Ekonomi, Manajemen, Akuntansi, 4(6), 8594–8610. https://doi.org/10.56799/ekoma.v4i6.9924
Aprilia, V. A., Anggraini, N., & Yani, A. (2023). Penerapan Psak 73 Terhadap Laporan Keuangan Dalam Meningkatkan Relevansi Laporan Keuangan. Jurnal Ilmiah Akuntansi Dan Keuangan (JIAKu), 2(1). https://doi.org/10.24034/jiaku.v2i1.5689
Ayu Purba, T. S., Simbolon, R. D., Simbolon, A. M., Sianipar, Y. S., & Putri Aruan, H. M. G. (2025). Standar Akuntansi Keuangan (SAK) di Indonesia. Economics and Digital Business Review, 6(2). https://doi.org/10.37531/ecotal.v6i2.2762
Board, P. C. A. O. (2007). AS 2201: An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements. Public Company Accounting Oversight Board. https://pcaobus.org/oversight/standards/auditing-standards/details/AS2201
Commission, C. of S. O. of the T. (2013). Internal Control—Integrated Framework. COSO. https://www.coso.org/internal-control
Huang, L.-H. (2026). Evaluating the internal control strategy in the AI industry: using the COSO framework. Applied Economics, 58(1), 172–185. https://doi.org/https://doi.org/10.1080/00036846.2025.2451255
IAI. (2025). Pernyataan Standar Akuntansi Keuangan 106: Akuntansi Musyarakah. Ikatan Akuntansi Indonesia, (106).
Ikatan Akuntansi Indonesia. (2025). Standar Akuntansi Keuangan Indonesia Efektif Per 1 Januari 2025. In Ikatan Akuntan Indonesia (IAI).
Indonesia, I. A. (2017). PSAK 73: Sewa. Dewan Standar Akuntansi Keuangan, Ikatan Akuntan Indonesia. https://web.iaiglobal.or.id/Berita-IAI/detail/pengesahan-psak-73-sewa-dan-draf-eksposur-isak-34-ketidakpastian-dalam-perlakuan-pajak-penghasilan
Lestari, I. P., Lestari, I., Kusrina, B. L., & Darmawati, S. S. (2022). Analisis Pengaruh Penerapan PSAK 73 terhadap Kinerja Keuangan pada Perusahaan BUMN Sub Sektor Jasa Konstruksi yang Terdaftar di Bursa Efek Indonesia Tahun 2019 dan 2020. Jurnal Ilmiah Manajemen, Ekonomi, & Akuntansi (MEA), 6(3), 1666–1688. https://doi.org/10.31955/mea.v6i3.2616
Nomorissa, T. A., & Lindrawati. (2021). Penerapan PSAK 73 terhadap Kinerja Keuangan pada Perusahaan Jasa di Bursa Efek Indonesia. Jurnal Riset Akuntansi Mercu Buana, 7(2), 116–129. https://doi.org/10.26486/jramb.v7i2.1757
Novatiani, R. A., Kusumah, R. W. R., Yadiati, W., Abdul Halim Rachmat, R., & Arifian Rachman, A. (2024). Internal auditor competence and internal control: Improving internal audit quality to prevent fraudulent financial statements. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2409339
Prasasti, N. D., Oktaliza, M., & Putra, I. (2025). Penerapan International Financial Reporting Standars (Ifrs) Dalam Meningkatkan Kualitas Laporan Keuangan. Journal of Management and Innovation Entrepreneurship (JMIE), 2(2). https://doi.org/10.70248/jmie.v2i2.1595
Pratama, A., Dewi, N., Sofia, P., Muhammad, K., & Megawati, L. R. (2024). Sustainability Reporting Ecosystem and IFRS S1 and S2: How Accounting Research Can Assist its Implementation. Journal of Ecohumanism, 3(4). https://doi.org/10.62754/joe.v3i4.3830
Saing, H. J., & Firmansyah, A. (2021). The Impact of PSAK 73 Implementation on Leases in Indonesia Telecommunication Companies. International Journal of Economics, Business and Accounting Research (IJEBAR), 5(3), 2360–2373. https://doi.org/10.29040/ijebar.v5i3.2804
Setiawan, I., Hestianisari, & Anjelina, P. (2023). Effect of Internal Control, Accountability, and Transparency of Financial Statements on the Financial Statements Quality (Case Study on Amil Zakat Institute of the Indonesian Zakat Initiative). Journal of Accounting and Finance in Emerging Economies, 9(2), 83–96. https://doi.org/10.26710/jafee.v9i2.2623
Siagian, I. P. S. (2021). Evaluasi Penerapan Internal Control Over Financial Reporting (ICoFR) untuk Meningkatkan Kualitas Laporan Keuangan - Case Study PSAK 73: Sewa di PT XYZ. In Evaluation of the Implementation of Internal Control Over Financial Reporting (ICoFR) to Improve the Quality of Financial Reports - Case Study PSAK 73: Lease at PT XYZ. https://lontar.ui.ac.id/detail?id=9999920556566&lokasi=lokal
Soraya, F. T., & Mita, A. F. (2023). Penyesuaian Proses Bisnis Pasca Implementasi PSAK 73 Sewa (Studi Kasus Pada PT XYZ). Jurnal Riset Akuntansi Dan Keuangan, 11(3), 469–480. https://doi.org/10.17509/jrak.v11i3.53221
Utami, E. R., Sumiyana, S., Barokah, Z., & Mustakini, J. H. (2025). IFRS 9 implementation indicating asset opacities: even though predicting earnings’ forecasts and value relevance in Asia-Pacific countries. Journal of Financial Reporting and Accounting, 23(3). https://doi.org/10.1108/JFRA-08-2022-0282
Utami, E. R., Sumiyana, S., Mustakini, J. H., & Barokah, Z. (2024). The IFRS 16 implementation in Asia-Pacific countries: enhancing asset pronouncements or opaque information’s conveyance. Accounting Research Journal, 37(1), 19–38. https://doi.org/10.1108/ARJ-04-2023-0115
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Nashita Numa Kdua Hisom, Dwi Martani
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International (CC-BY-SA). that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
