This study case aims to apply and compare various theories regarding audit principles, payroll scheme fraud, COSO internal control components and related International Standards on Auditing regulations with the practice in golf business through analyzing the effectiveness and efficiency of PT Lippo Karawaci Tbk subsidiary’s internal control and their risk assessment against payroll cycle. The overall result was that Imperial Klub Golf hasn’t applied COSO internal control components as a whole and hasn’t practiced risk assessment to maintain qualities which conduce inefficiencies in some of the payroll cycle (recruitment, attendance, appraisal, salaries and wages payment, and resignation).