The effects of competence, independence, audit work, and communication on the effectiveness of internal audit

Dyah Setyaningrum; Cris Kuntadi

doi:10.14414/jebav.v22i1.879

Authors

Dyah Setyaningrum Fakultas Ekonomi dan Bisnis Universitas Indonesia
Cris Kuntadi

DOI:

https://doi.org/10.14414/jebav.v22i1.879

Keywords:

audit work, communication, competence, independence, internal audit effectiveness

Abstract

The purpose of this study was to examine the effect of competence, independence, audit work and communication on internal audit effectiveness. This research is still relevant due to lacking in internal audit function as there are still many corruption cases, especially in the Ministries/Agencies. This is a quantitative research using questionnaires distributed to the auditors in Inspectorate General of the Ministry of Transportation as respondents.Â Inspectorate General of the Ministry of Transportation is one of the institutions with IACM level 3 (integrated) in Indonesia. It showed that competence, communication, and audit work have positive effect on internal audit effectiveness, while independence has no effect on internal audit effectiveness. It implies that the auditors should be equipped with the audit technical competence as well as non-technical competencies relevant with their audit area. Audit work from planning, implementation and post-audit should always comply with audit standard. Effective oral and written communication between the auditor and the auditee should also be enhanced in form of audit reports to the follow-up of audit recommendations. Independence in this study does not affect the effectiveness of the internal audit, because independence is fact is main requirement when conducting audit.

References

Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of

International Accounting, Auditing and Taxation, 23(2), 74-86.

Baharud-din, Zulkifli, Alagan Shokiyah, & Mohd Serjana Ibrahim. (2014). Factors that Contribute to the Effectiveness of Internal Audit in Public Sector. DOI: 10.7763/IPEDR. Vol. 70.

Cohen, Aaron, & Gabriel Sayag. (2010). The Effectiveness of Internal Auditing: An Empirical Examination of its Determinants in Israeli Organisations. Australian Accounting Review. Vol. 20 (54).

Effendi, Muh. Taufik. 2010. Pengaruh Kompetensi, Independensi dan motivasi terhadap

Kualitas Audit Aparat Inspektorat Dalam Pengawasan Keuangan Daerah. Tesis. Universitas Diponegoro.

Feizizadeh, A. (2012). Strengthening internal audit effectiveness. Indian Journal of Science and Technology, 5(5), 2777-2778.

Manao, Hekinus. (2009). Sambutan Inspektur Jenderal. The Internal Audit in Brief Inspektorat Jenderal Kementerian Keuangan.

Peraturan Menteri Pendayagunaan Aparatur Negara Nomor: PER/05/M.PAN/03/2008 tentang Standar Audit Aparat Pengawasan Intern Pemerintah

Peraturan Pemerintah Nomor 60 Tahun 2008 tentang Sistem Pengendalian Intern Pemerintah (SPIP).

Sukesti, Fatmasari dan Alfasadun. (2011). Transparansi APBD sebagai Akuntabilitas dan Good Governance.

The Institute of Internal Auditors Standards and Guidance. International Standards for the Professional Practice of Internal Auditing. http://www.theiia.org/guidance/standards-and-guidance/ippf/standards/full-standards/?search=risk

www.itjen.kemenhub.go.id

www.kpk.go.id