THE EFFECT BETWEEN COORDINATION AND COOPERATION IN INTERNAL AUDITOR WITH EXTERNAL AUDITORS TO AN EFFECTIVENESS OF INTERNAL AUDIT: CASE STUDY ON A ROLE MANAGEMENT SUPPORT

2020 ◽  
Author(s):  
hendra poltak
Keyword(s):  
Internal Audit ◽  
Analysis Tool ◽  
Management Support ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors ◽  
Pls Analysis ◽  
And Performance ◽  
Audit Effectiveness

The internal audit ineffectiveness is marked by the weakness of financial accountability. This research aimed to examine and provide determinants of the internal audit effectiveness at the Ministry of Maritime Affairs and Fisheries (KKP). The research sample consisted of 31 inter-nal auditors and 31 KKP employees. This research belongs to the explanatory research. The re- search questionnaire data to test hypotheses were analyzed with the Partial Least Squares (PLS) analysis tool. The results showed that the coordination and cooperation of internal auditors with external auditors had a positive effect on the effectiveness of internal audits. In addition, man-agement support was able to moderate the coordination and cooperation of internal auditors with external auditors on the effectiveness of internal audits. This finding can open the horizons of interested parties, especially KKP leaders to consider policies that can improve the effectiveness of internal audits to improve organizational objectives and performance.

scholarly journals The Determinants of the Effectiveness of Internal Audits with Management Support as the Moderating Variable

2019 ◽  
Author(s):  
hendra poltak
Keyword(s):  
Analysis Tool ◽  
Management Support ◽  
Questionnaire Data ◽  
Organizational Goals ◽  
Internal Auditors ◽  
External Auditors ◽  
Pls Analysis ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect

Weak financial accountability reflects the lack of effectiveness of internal audits. The purpose of this research was to test and provide the evidence of the determinants of the effectiveness of internal audits at the Ministry of Marine Affairs and Fisheries (KKP). The samples of this research were 31 internal auditors and 31 KKP employees. This research was explanatory research. To test the hypotheses, the data of the research questionnaire data were analysed using Partial Least Squares (PLS) analysis tool. The results show that the relationship between internal auditors and external auditors, organizational independence, and auditee perceptions positively influences the effectiveness of internal audits. However, audit professionalism does not have a positive effect towards the effectiveness of internal audits and the management support cannot be a moderating variable. This finding can open the horizons of interested parties, especially KKP leaders, to consider policies that can improve the effectiveness of internal audits to improve organizational goals and performance.

scholarly journals The Determinants of the Effectiveness of Internal Audits with Management Support as the Moderating Variable

2019 ◽  
Vol 6 (1) ◽  
pp. 33 ◽  
Author(s):  
Hendra Poltak ◽  
Made Sudarma ◽  
Lilik Purwanti
Keyword(s):  
Analysis Tool ◽  
Management Support ◽  
Questionnaire Data ◽  
Organizational Goals ◽  
Internal Auditors ◽  
External Auditors ◽  
Pls Analysis ◽  
And Performance ◽  
The Relationship ◽  
Positive Effect

Weak financial accountability reflects the lack of effectiveness of internal audits. The purpose of this research was to test and provide the evidence of the determinants of the effectiveness of internal audits at the Ministry of Marine Affairs and Fisheries (KKP). The samples of this research were 31 internal auditors and 31 KKP employees.  This research was explanatory research. To test the hypotheses, the data of the research questionnaire data were analysed using Partial Least Squares (PLS) analysis tool. The results show that the relationship between internal auditors and external auditors, organizational independence, and auditee perceptions positively influences the effectiveness of internal audits. However, audit professionalism does not have a positive effect towards the effectiveness of internal audits and the management support cannot be a moderating variable. This finding can open the horizons of interested parties, especially KKP leaders, to consider policies that can improve the effectiveness of internal audits to improve organizational goals and performance.

scholarly journals Investigation Factors Affecting the Effectiveness of Internal Auditors in the Company: Case Study Iran

2016 ◽  
Vol 8 (2) ◽  
pp. 224 ◽  
Author(s):  
Tabandeh Salehi
Keyword(s):  
Multivariate Regression ◽  
Internal Audit ◽  
Multivariate Regression Model ◽  
External Audit ◽  
Factors Affecting ◽  
Internal Auditors ◽  
External Auditors ◽  
Main Determinants ◽  
Audit Effectiveness

<p>There are relatively fewer number of studies focused on internal audit effectiveness, than the number of studies on the effectiveness of external audit. Our focus in this paper is mainly on determinants of internal audit effectiveness. For this purpose we developed and tested five hypotheses using an investigation approach. We gathered our data using a questionnaire, filled out by 355 internal audit manager and 272 other internal audit staff.</p><p>Our multivariate regression model estimates the relationships between the effectiveness of internal audit department and its five main determinants: competency of internal audit staff, size of internal audit department, communications between internal auditors and external auditors, management’s support for internal audit department, and independent (outsourced) internal audit.</p><p>Our results show that internal audit effectiveness has stronger relationships with management’s support for hiring and experienced educated staff, providing the internal audit department with sufficient resources, and the size of internal audit department.</p>

scholarly journals DETERMINAN EFEKTIVITAS AUDITOR INTERNAL PEMERINTAH (Studi Pada Kantor Inspektorat Provinsi Maluku Utara)

2018 ◽  
Vol 14 (1) ◽  
pp. 55
Author(s):  
Irfan Zamzam ◽  
Suriana AR Mahdi
Keyword(s):  
Career Path ◽  
Internal Audit ◽  
Top Management ◽  
Management Support ◽  
Professional Expertise ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Top Management Support ◽  
Quality Of Work

This study examines the determinants of the effectiveness of internal auditors at the Office of the Inspectorate of North Maluku. Specifically, this study tests; influence of professional expertise, quality of work, independence, perceived career path and top management influence of internal auditor on the effectiveness of internal audit. Analysis was conducted by using multiple regression analysis from 43 respondents. The results showed that; Professional expertise, quality of work, independence and career path affect the effectiveness of internal audit while top management support does not influence the effectiveness of internal audit.

scholarly journals DETERMINAN EFEKTIVITAS AUDITOR INTERNAL PEMERINTAH (Studi Pada Kantor Inspektorat Provinsi Maluku Utara)

2018 ◽  
Vol 14 (1) ◽  
pp. 55
Author(s):  
Irfan Zamzam ◽  
Suriana AR Mahdi
Keyword(s):  
Career Path ◽  
Internal Audit ◽  
Top Management ◽  
Management Support ◽  
Professional Expertise ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Top Management Support ◽  
Quality Of Work

This study examines the determinants of the effectiveness of internal auditors at the Office of the Inspectorate of North Maluku. Specifically, this study tests; influence of professional expertise, quality of work, independence, perceived career path and top management influence of internal auditor on the effectiveness of internal audit. Analysis was conducted by using multiple regression analysis from 43 respondents. The results showed that; Professional expertise, quality of work, independence and career path affect the effectiveness of internal audit while top management support does not influence the effectiveness of internal audit.

External Auditor Evaluations of Outsourced Internal Auditors

2010 ◽  
Vol 29 (2) ◽  
pp. 159-173 ◽  
Author(s):  
Duane M. Brandon
Keyword(s):  
Internal Audit ◽  
Audit Fees ◽  
Accounting Firms ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors ◽  
Consulting Services ◽  
Significant Area ◽  
External Auditor ◽  
Nonaudit Services

SUMMARY: In the last decade internal auditing services has been a significant area of growth for public accounting firms. Unlike the provision of external audits, the provision of outsourced internal audit services does not prohibit accounting firms from providing the client with additional services. This study investigates some implications of an outsourced internal auditor providing nonaudit services. Specifically, 89 experienced external auditors completed an experiment to investigate whether external auditors will evaluate and rely on an outsourced internal auditor’s work differently when the internal auditor also provides nonaudit services. Results indicate that evaluations of the outsourced internal auditors’ objectivity were negatively affected by the provision of nonaudit services. Further, the differences in objectivity perceptions are tempered by the use of different personnel to provide consulting services. Competence perceptions were not affected. Results also indicate that external auditor reliance on internal audit and suggested audit fees are affected. However, these results do not appear to be tempered by audit and nonaudit staffing decisions.

scholarly journals The Effect of Competence, Objectivity and Internal Audit Quality The Effectiveness of Internal Audit with Senior Management Support As Variable Moderation

2019 ◽  
Author(s):  
Eki Novranggi ◽  
Sunardi .
Keyword(s):  
Empirical Study ◽  
Audit Quality ◽  
Internal Audit ◽  
Positive Influence ◽  
Senior Management ◽  
Management Support ◽  
Internal Auditors ◽  
Moderating Variables ◽  
Audit Effectiveness

The formulation of the problem in this study was the Influence of Competence, Objectivity and Internal Audit Quality toward the Internal Audit Effectiveness with Senior Management Support as Moderating Variables (Empirical Study on Banking in Ogan Ilir and Seberang Ulu, Palembang City, South Sumatra Province). The Objective of This study was to analyze the the influence of Competence, Objectivity and Internal Audit Quality toward the Internal Audit effectiveness with Senior Management Support as a Moderating Variable. This study was an associative study. The population used in this study was banks that have internal auditors. The sample in this study were 34 respondents.Thetechniquesofcollectingthedatawasquestionnaires.Hypothesis test used were multiple linea rregression and moderated regression analysis.The results of this study showed partially that competence has a positive influence on internal audit effectiveness,theobjectivityhasapositiveinfluenceontheinternalauditeffectiveness and internal audit quality has a positive influence on internal audit effectiveness,the senior management support could moderate the influence of internal audit quality on the internal audit effectiveness.. Simultaneously competence, objectivity and audit quality have a positive influence on the of internal audits effectiveness.

scholarly journals Criteria for evaluating the effectiveness of the internal audit of an economic entity

2021 ◽  
Vol 7 (3B) ◽  
pp. 504-510
Author(s):  
Yulia Nikolaevna Kovalenko ◽  
Svetlana Nikolaevna Kovalenko ◽  
Natalia Alekseevna Prodanova ◽  
Marina Mikhailovna Krekova ◽  
Vadim Anatolevich Mironchuk ◽  
...  
Keyword(s):  
Audit Committee ◽  
Internal Audit ◽  
Control Measures ◽  
Executive Management ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors ◽  
Audit System ◽  
Economic Entity ◽  
The Board Of Directors

The article raises issues related to the need and possibility of evaluating the effectiveness of the internal audit system. The directions of internal auditors 'audits are formed, the procedure of actions of various structural divisions within the framework of effective corporate governance is described, the key factors of the effectiveness of internal auditors' work are given, their essence is revealed. The necessity of creating an internal audit committee is justified, and the provisions of the internal audit committee are prescribed, according to its supervisory role in the activities of an economic entity. The role of the internal auditor and its interaction with external auditors who carry out control measures are described, arguments are given about internal cooperation between the board of directors, the internal audit committee and the executive management of an economic entity in relation to the control system.

scholarly journals The effects of human resources in internal audit on external audit pricing decision

2018 ◽  
Vol 15 (4-1) ◽  
pp. 165-180
Author(s):  
Moon Kyung Cho
Keyword(s):  
Small Firms ◽  
Internal Audit ◽  
Audit Fees ◽  
Auditor Independence ◽  
Professional Judgment ◽  
External Audit ◽  
Internal Auditor ◽  
Internal Auditors ◽  
External Auditors ◽  
General Internal

This study presents evidence that external audit fees are negatively and significantly associated with the proportion of general internal auditors. Further, external audit hours are negatively and significantly associated with the proportion of general auditors without affecting external unit audit price. In addition, the results of the data adjusted for firm size suggest that audit fees and audit hours decrease for smaller firms as the proportion of general internal auditor increases. The result implies that both small firms and their external auditors are encouraged to utilize more general internal auditors in performing an external audit. The author finds no evidence that external audit fees are associated with internal auditor expertise or experience. This shows that external auditors are not likely to rely on internal auditors’ professional judgment in performing an external audit due to reduced auditor independence.

An Examination of Internal Auditor Objectivity: In-House versus Outsourcing

2004 ◽  
Vol 23 (2) ◽  
pp. 147-158 ◽  
Author(s):  
Sunita S. Ahlawat ◽  
D. Jordan Lowe
Keyword(s):  
Exploratory Study ◽  
Internal Audit ◽  
Accounting Firms ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Internal Audit Function ◽  
Big 4 ◽  
Client Advocacy

The internal audit function is evolving from its traditional oversight function to one that includes a wider spectrum of activities that add value to their organizations. In addition, economic pressures have forced many companies to consider outsourcing as an alternative. These ongoing changes have caused some concern regarding the potential lack of objectivity and independence for internal auditors. This exploratory study examines whether outsourcing of the internal audit function is susceptible to client advocacy vis-a`-vis in-house auditing, which itself may be sensitive to an employer advocacy Sixty-six practicing members of the Institute of Internal Auditors (IIA) completed a case study involving a corporate acquisition scenario. Of the 66 participants, 35 were from corporations (in-house), while the remaining 31 were from the Big 4 accounting firms (outsource). Advocacy was manipulated by asking participants to assume the role of internal auditor for either the buyer or the seller of a target division. Result s indicate that significant advocacy existed in the judgments of both in-house and outsource internal auditors. However, the extent of advocacy was less severe in the case of outsource auditors.

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