Abstract
This research examines the implementation of internal control strategies in addressing budget constraints within the Inspectorate General of the Ministry of Communication and Digital Affairs. The research is motivated by the 2025 fiscal efficiency policy, which significantly reduced budget allocations for government institutions, including internal audit units responsible for ensuring accountability and good governance. The objective of this research is to analyze how the five components of the COSO Internal Control Framework are implemented under limited financial resources, identify factors contributing to weaknesses in internal control, and explore adaptive strategies that support organizational effectiveness. This research employs a qualitative case study approach within an interpretivist paradigm. Data were collected through in-depth interviews, participatory observation, and document analysis involving key stakeholders within the Inspectorate General. The data were analyzed using the interactive model developed by Miles, Huberman, and Saldaña, with General Systems Theory and the COSO Internal Control Framework serving as analytical lenses. The findings indicate that budget constraints affect the effectiveness of internal control implementation, particularly in areas such as risk assessment, control activities, and capacity development. However, internal control remains effective when supported by strong organizational commitment and adaptive mechanisms. The research also reveals that the use of technology, human resource optimization, and risk-based prioritization are key adaptive strategies that enhance efficiency without compromising audit quality. In conclusion, internal control functions not only as a compliance mechanism but also as a strategic instrument that strengthens organizational resilience under conditions of fiscal constraint.