Inventory as a part of core factors in running a business should always be preserved. As it is kind of a high risk commodity in a company that somehow is closely related to fraud. With the current economic condition which has worsened in recent years, becoming the reason for people to do an unethical doing including theft. Author is taking PT Duta BetonSejati’s inventory cycle as the subject of this research. The objectives of this research is to analyze whether the company’s transaction regarding inventory has gone in accordance to the SOP and work flow. Also to analyze whether the SOP sets by the company is effective and appropriate to the activity. This research used a qualitative case study method. Result of this will research will be presented descriptively. Findings of this research shows that the company has two kinds of deficiencies which is operation and design. Compare to COSO, their SOP is lack of Control Activities that cause the employees work without a proper supervision and causing mistakes and misstatements.