PENINGKATAN PENILAIAN RISIKO OLEH RISK-BASED INTERNAL AUDITING MELALUI AGILE AUDIT PLANNING PADA ERA NEW NORMAL

2021 ◽  
Vol 18 (2) ◽  
pp. 109
Author(s):  
Wicaksono Bagus Dewandaru ◽  
Ranti Widiastuti ◽  
Zahra Wanda
Keyword(s):  
Risk Assessment ◽  
Organizational Performance ◽  
Portfolio Management ◽  
Internal Audit ◽  
Internal Auditing ◽  
New Normal ◽  
Internal Auditors ◽  
Audit Planning ◽  
Normal Period ◽  
Business Flow

Every business organization is currently faced with various large-scale business risks caused by the COVID-19 pandemic and government policies that limit the company's business flow. The business flow from upstream to downstream is disrupted due to the pandemic that occurs and the transition during the new normal period which affects organizational performance, for example, MSMEs. The role of internal auditing is very necessary to ensure that operational performance continues to run effectively and optimally under the uncertainty of the new normal era. Accountants as internal auditors with the concept of risk-based internal auditing must respond and quickly mitigate various risks that may occur as an effort to assist management. The concept of agile portfolio management, namely agile audit planning, is considered relevant in this condition, agile approach is widely studied as a solution in improving internal audit performance. Agile audit planning is considered to be more flexible and effective than traditional audit procedures. This paper provides a solution in increasing risk assessment for internal auditors in the form of risk assessment to mitigate the risks in business uncertainty due to pandemics, which is implemented in local MSME with the aim of assisting in assessing business risks. This paper was prepared using a qualitative descriptive method, with secondary reference sources through literature review from related literature sources and primary by interview method. The result of this paper is an idea of the effectiveness of agile audit planning in assessing the risks obtained from comparative analysis with traditional audit procedures and analysis of the benefits of implementing agile audit planning in MSMEs. This paper will provide an overview of the advantages of implementing agile audit planning in the new normal.Keywords: Agile Audit Planning, Internal Audit, MSME, New Normal, Risk-Based Internal Auditing

Internal Audit Structure and Fraud Risk Assessment From a Regulatory Perspective

2019 ◽  
pp. 302-332
Author(s):  
Lale Aslan
Keyword(s):  
Risk Assessment ◽  
Portfolio Management ◽  
Internal Audit ◽  
Internal Auditors ◽  
Fraud Risk ◽  
Critical Areas ◽  
Regulatory Perspective ◽  
Descriptive Approach ◽  
Audit Standards

This chapter aims to depict the role of internal audit in Turkish capital markets by comparing the internal audit structure and its role in detecting fraud in financial institutions and developing a framework for assessing fraud risk in intermediary institutions. The newly constructed regulations concerning banks, intermediary institutions, and portfolio management companies are compared to a global benchmark by using a conceptual and descriptive approach. According to the results of this comparison, it is clear that Turkish legislation needs to be improved in critical areas. “Integrity” should be incorporated as a founding concept of the internal audit function. Certification of internal auditors needs to be encouraged, and internal audit standards need to be adapted. As a result, a fraud risk assessment template influenced by the new regulatory framework is developed for intermediary institutions.

New perspective on the black box of internal auditing and organisational change

2016 ◽  
Vol 31 (8/9) ◽  
pp. 804-820 ◽  
Author(s):  
Aviv Kidron ◽  
Yuval Ofek ◽  
Herztel Cohen
Keyword(s):  
Public Sector ◽  
Quantitative Methods ◽  
Internal Audit ◽  
Organisational Change ◽  
Internal Auditing ◽  
Content Type ◽  
Internal Auditors ◽  
The Public ◽  
Innovative Model ◽  
Audit Information

Purpose The shift from the traditional audit towards performance audit implies that internal auditors in the public sector function as change agents who underpin the fundamental change process. This paper aims to propose a model that identifies the determinants of organisational change in the public sector that result from internal auditing and the way internal auditors facilitate it. Design/methodology/approach The conceptual discussion of this paper is based on a review of relevant literature, both practical and academic. Findings This paper develops an innovative model that describes the factors leading to auditees’ change readiness after undergoing internal audit processes. The independent variable is audit information quality and the dependent variable, organisational change. Auditees’ perceptions is the mediator variable, and accessibility to audit information is the moderator variable. Practical implications The proposed model suggests the advantages that can be gained by audit-related services, which in turn will add value to the organisation. The relationships between the variables inform practitioners on how to support effective audits as a means of increasing performance and influencing organisational change. Originality/value As the paper offers an innovative model, it may open up new research areas in internal auditing that can be studied by using both qualitative and quantitative methods.

scholarly journals PENGARUH PELAKSANAAN RISK BASED INTERNAL AUDITING TERHADAP PENCEGAHAN FRAUD

2015 ◽  
Vol 3 (3) ◽  
pp. 831
Author(s):  
Rozmita Dewi Yuniarti Rozali ◽  
Jabbaar Mohammad
Keyword(s):  
Regression Analysis ◽  
Sampling Method ◽  
Internal Audit ◽  
Positive Influence ◽  
Internal Auditing ◽  
Fraud Prevention ◽  
Internal Auditors ◽  
Simple Regression Analysis ◽  
Simple Regression

This study aims to determine the effect of implementation of risk based internal auditing on fraud prevention on internal audit Inspection Office Bank BRI Bandung Region. The sample used by 18 internal auditors in Inspection Office of Bank BRI Bandung Region saturated sampling method. Based on calculation of simple regression analysis obtained result that every increase of implementation of risk based internal auditing (X) will lead to increase fraud prevention (Y). It shows that there is a positive influence between the implementation of risk based internal auditing on fraud prevention on the internal audit of Inspection Office of Bank BRI Bandung Region.

Internal Auditing in India and China: Some Empirical Evidence and Issues for Research

2018 ◽  
Vol 34 (4) ◽  
pp. 511-523 ◽  
Author(s):  
R. Narayanaswamy ◽  
K. Raghunandan ◽  
Dasaratha V. Rama
Keyword(s):  
Empirical Evidence ◽  
Emerging Economies ◽  
Internal Audit ◽  
The United States ◽  
Future Research ◽  
Internal Auditing ◽  
Internal Auditors ◽  
Internal Audit Function ◽  
India And China

Internal auditing is an important element in the corporate governance framework. Yet, research related to internal auditing, particularly in emerging economies like India and China, is sparse. We use data from responses provided by chief audit executives to provide empirical evidence about the extent of support for internal auditing and the determinants of such support in India and China, and compare the data with those from the United States. We find that such support is negatively related to pressure on internal auditors to suppress or alter their findings. We also provide descriptive evidence about the work and staffing of the internal audit function. We discuss the role of internal auditing in India and identify some possible avenues for future research.

Does the chief audit executive gender matter to internal audit effectiveness? Evidence from Tunisia

2019 ◽  
Vol 10 (4) ◽  
pp. 424-439
Author(s):  
Ahmed Atef Oussii ◽  
Mohamed Faker Klibi
Keyword(s):  
Quality Assurance ◽  
Internal Audit ◽  
Internal Auditing ◽  
Content Type ◽  
Internal Auditors ◽  
Positive Effects ◽  
Internal Audit Function ◽  
Management Positions ◽  
African Perspective ◽  
Executive Gender

Purpose The purpose of this paper is to investigate whether chief audit executive (CAE) gender has a significant impact on the internal audit function (IAF) effectiveness as proxied by the extent to which the internal audit function uses quality assurance techniques. Design/methodology/approach This study uses a multivariate regression model to analyze the association between CAE gender and the use of quality assurance techniques in fieldwork as a proxy for IAF effectiveness. Data were collected using a survey of 74 internal auditors from Tunisian listed companies. Findings The results indicate that IAFs run by a female CAE are more likely to incorporate quality assurance techniques into fieldwork than IAFs run by male CAEs. Therefore, internal audit departments managed by women tend to be more effective. Practical implications Findings highlight to regulators and reform advocates the importance of having women on the CAE position will improve internal audit practices’ quality. Thus, the gender difference in internal auditing should be more strongly emphasized in different cultural and economic contexts. Originality/value This study provides new insights which add to the existing gender literature by introducing a North African perspective and simultaneously providing new insights that highlight the importance of having women on top management positions in internal auditing and the positive effects which come with it.

scholarly journals PENERAPAN RISK BASED INTERNAL AUDITING: STUDI KASUS PADA PLAN INTERNATIONAL INDONESIA

2018 ◽  
Vol 12 (1) ◽  
pp. 104-126
Author(s):  
Anitaria Siregar ◽  
Siti Nurwahyuningsih Harahap
Keyword(s):  
Risk Management ◽  
Qualitative Approach ◽  
Internal Auditing ◽  
Internal Auditors ◽  
Audit Planning ◽  
Audit Strategy ◽  
Risk Maturity ◽  
Management Audit

The purposes of this research is to assess risk maturity of Plan International Indonesia to determine whether Plan  International Indonesia could implement the Risk Based Internal Auditing (RBIA) approach. Methodology which is used is descriptive methodology with qualitative approach. The Institute of Internal Auditors (2014)  suggests the factors that can be taken into account when doing the assessment of risk maturity, and these factors are used for doing the assessment on this research. The result of this research shows the risk maturity of Plan International Indonesia is risk managed stage which mean Plan International Indonesia is ready to implement the RBIA approach. Risk managed also has the meaning that risk register of Plan International Indonesia can be used as the base for the audit planning in this approach. The audit strategy that will be used are management view of risk drives audit plan, assurance being given for the risk management and mitigation, and consulting service to improve risk management. Audit internal team needs to improve their capacity before implementation of this approach and also communication and socialization must be done to entire organization.

scholarly journals CONNECTING COMPETENCY IN INTERNAL AUDIT WITH TAX ADMINISTRATION PERFORMANCE: A CASE STUDY OF THE NIGERIAN TAX AUTHORITY

2021 ◽  
Vol 11 (No.2) ◽  
pp. 73-94
Author(s):  
Zakariya’u Gurama ◽  
Muzainah Mansor
Keyword(s):  
Internal Audit ◽  
Tax Administration ◽  
Internal Auditing ◽  
Successful Performance ◽  
Case Study Methodology ◽  
Internal Auditors ◽  
Face To Face ◽  
Study Methodology ◽  
Inland Revenue

The aim of this study is to identify and analyse internal audit competency requirement for effective auditing performance in tax administration. To achieve this, a case study methodology was employed to carry out a face-to-face interview with 9 internal auditors of the Federal Inland Revenue Service (FIRS) Nigeria. The collected data was analysed using Nvivo qualitative software. The findings of the study show that qualification, knowledge and skills are the three major indicators of internal auditors’ competency in performing effective auditing functions in tax administration. This study implies that to achieve a successful performance of internal auditing in the FIRS, competent internal audit staffs are highly needed for effective internal auditing performance.

scholarly journals The importance of considering internal audit as a decision-making by top-management of an agricultural company

2020 ◽  
Vol 6 (3) ◽  
pp. 123-136
Author(s):  
Miloš Jokić
Keyword(s):  
Decision Making ◽  
Internal Control ◽  
Internal Audit ◽  
International Standards ◽  
Top Management ◽  
Internal Auditing ◽  
Internal Auditors ◽  
Agricultural Enterprises ◽  
Agricultural Enterprise ◽  
Valid Information

The top management's decision-making in an agricultural enterprise should be based on valid information gathered within the enterprise itself. Collecting timely business information is done daily by all sectors of the enterprise. Merely improving the security of information gathering and the safety of all parts of the enterprise is a task performed by trained internal control and internal audit personnel in the company, appointed by top management. In performing their duties on a regular basis, internal auditors should apply procedures and methodologies that are consistent with International Standards on the Professional Practice of Internal Auditing in their work. The aim of the paper is to emphasize the importance of implementing the adopted methodology of work of internal auditors in agricultural companies. The author points out those standards that are in line with best audit practice should be applied in internal audit work. The contribution of the study authors is to emphasize the importance of applying the internal audit profession in the regular operation of agricultural enterprises, which is in line with the general objective of improving the regular business operation.

Attracting Applicants for In-House and Outsourced Internal Audit Positions: Views from External Auditors

2015 ◽  
Vol 30 (1) ◽  
pp. 143-156 ◽  
Author(s):  
Geoffrey D. Bartlett ◽  
Joleen Kremin ◽  
K. Kelli Saunders ◽  
David A. Wood
Keyword(s):  
Critical Role ◽  
Internal Audit ◽  
Job Applicants ◽  
Internal Auditing ◽  
Internal Auditors ◽  
External Auditors ◽  
Internal Audit Function ◽  
Career Option ◽  
Negative Perceptions ◽  
Survey Results

SYNOPSIS While the internal audit function (IAF) plays a critical role in organizations, it faces challenges in finding sufficient numbers of high-quality job applicants to fill its ranks. The results of two experiments suggest that practicing external auditors are twice as likely to apply for positions that are labeled as accounting positions rather than either in-house or outsourced internal audit positions. The results also suggest that external auditors have negative perceptions of the profession and work environment of internal auditors—especially in-house internal auditors relative to outsourced internal auditors—and are more likely to recommend that mediocre rather than top students apply to work in internal auditing. We also provide survey results from experienced external auditors about aspects of internal auditing that may be improved to make it a more attractive career option. Taken together, the results suggest internal auditing faces significant hiring challenges, but also offer ways to mitigate these challenges.

Continuous Auditing and Risk-Based Audit Planning—An Empirical Analysis

2020 ◽  
Vol 17 (2) ◽  
pp. 141-155 ◽  
Author(s):  
Marc Eulerich ◽  
Christine Georgi ◽  
Alexander Schmidt
Keyword(s):  
Audit Committee ◽  
Research Question ◽  
Internal Audit ◽  
Positive Influence ◽  
Internal Auditing ◽  
Continuous Auditing ◽  
Audit Planning ◽  
Positive Effects ◽  
Internal Audit Function ◽  
External Auditor

ABSTRACT Due to rapidly changing risks in companies, a continuous alignment of internal audit activities with the relevant risks is required. Continuous auditing (CA) is one possible way to meet these requirements. Specifically, the internal audit function (IAF) could use CA as a methodology in order to add a continuous perspective to their risk assessment. This study examines factors associated with the use of CA information in the IAF's risk-based audit planning (RBAP). We use survey data from 264 chief audit executives to address our research question. We find several factors having a positive influence on the use of information from CA in RBAP. These factors include the importance of data analytics, the collaboration with the audit committee and external auditor, as well as the use of IAF's results for fraud prevention. Furthermore, our additional analysis presents various positive effects of CA on potential output measures of internal auditing. JEL Classifications: G30; G32; G34; M42.

Sign in / Sign up

Export Citation Format

Share Document