THE EFFECT OF INTERNAL CONTROL ON PROFITABILITY IN SMALL AND MEDIUM MICRO ENTERPRISES (Case Study on UMKMs Mekar Jati Group Karang Bolo Village, West Ungaran, Semarang District

Abstract

Profitability has an important meaning for the company because t s one of the basis for assessing the condition of a company. The level of profitability describes the company's performance as seen from the company's ability to make a profit. internal control for a company s also very mportant. A small company n Indonesia still tends to gnore the consep d and iinternal controlling practices. The purpose of this research s to find out how much nfluence internal control has on the profitability of a company, especially n small compainies such as n MSMEs Mekar Jati Group. The population of this study s small and medium-sized micro enterprises (MSMEs) n the hamlet of Karang Bolo. The sample numbered approximately 30 people with a period of effort that has been done for 3-20 years. The data collection method s done by nterview method, observation method and questionnaire method measured by likert scale. The results showed that 5 components (Environment Control, Risk Assessment, Control Activities, Commuinication nformation and Moinitoring) of internal control there are 2 components (Risk Assessment and Moinitoring) that have no effect on profitability. Keywords : Profitability, internal Control, Msmes.