scholarly journals THE EFFECT OF THE ROLE OF LEADERSHIP ON ORGANIZATIONAL CULTURE AND INTERNAL CONTROL EFFECTIVENESS

2020 ◽  
Vol 5 (01) ◽  
pp. 1
Author(s):  
Francisca Devi Anita ◽  
Dwi Setiawan
Keyword(s):  
Organizational Culture ◽  
Organizational Behavior ◽  
Internal Control ◽  
Unethical Behavior ◽  
Internal Audit ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Control Effectiveness ◽  
Main Factor

<p><strong><em>Good internal control can provide confidence that an organization can achieve its goals with ethical actions. The phenomenon that occurs at this time shows that organizational culture is the main factor causing the emergence of huge scandals that afflict an organization that can prevent the organization from achieving its objectives. Risk in culture occurs when the behavior of members of an organization is not in line with the behavior that the organization wants to instill, causing unethical behavior that can hinder the achievement of goals and influence internal control of the organization.</em></strong></p><p><strong><em>At present, the organizational culture is an essential area within the scope of internal audit work. The role of the current internal auditor is expected to provide adequate assurance regarding one element of risk culture, namely the role of the leader (tone from the top) that has been carried out by following the values and ethics instilled by the organization. Leaders have a significant influence on the formation of culture and internal control systems in organizational units so that the role of internal auditors can provide confidence that the culture formed does not negatively affect overall organizational behavior becomes important.</em></strong><strong><em>  </em></strong></p>

scholarly journals EFEKTIVITAS PENGENDALIAN INTERNAL, AUDIT INTERNAL, KARAKTERISTIK INSTANSI DAN KASUS KORUPSI (STUDI EMPIRIS DI KEMENTERIAN/ LEMBAGA)

2016 ◽  
Vol 2 (1) ◽  
pp. 27
Author(s):  
Nurhasanah Nurhasanah
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Secondary Data ◽  
Internal Controls ◽  
Audit Report ◽  
Internal Auditors ◽  
Control Effectiveness ◽  
Work Units ◽  
Positive Effect

ABSTRAKPenelitian ini meneliti pengaruh antara efektivitas pengendalian internal, peran audit internal, tingka kewenangan audit internal, ukuran audit internal, ukuran dan kompleksitas instansi terhadap korupsi di kementerian/lembaga di Indonesia. Efektivitas pengendalian internal dilihat dari jumlah temuan pengendalian internal yang ada di laporan hasil pemeriksaan BPK, sedangkan peran pengawas pengendalian internal dalam suatu instansi dilakukan oleh audit internal diproksikan dengan jumlah temuan ketidakpatuhan dalam peraturan perundang-undangan hasil pemeriksaan BPK. Karakteristik instansi dilihat dari ukuran dan kompleksitas kementerian/lembaga. Variabel dependen yaitu korupsi pada kementerian/lembaga dilihat dari jumlah kasus korupsi pada kementerian/lembaga pada tahun 2012-2014. Penelitian ini menggunakan data sekunder dengan sampel 249 kementerian dan lembaga di Indonesia. Hasil penelitian menunjukkan bahwa efektivitas pengendalian internal, tingkat kewenangan audit internal berupa struktur organisasi audit internal setingkat eselon I berpengaruh dalam menurunkan kasus korupsi. Total anggaran (dalam Rupiah) berpengaruh positif terhadap kasus korupsi. Sedangkan jumlah temuan ketidakpatuhan dalam peraturan perundang-undangan hasil pemeriksaan BPK, jumlah auditor internal dan jumlah satuan kerja pada kementerian/lembaga tidak mempengaruhi korupsi.KATA KUNCI : korupsi, pengendalian internal, peran audit internal, ukuran kementerian/lembaga, kompleksitas kementerian/lembaga. ABSTRACTThis study investigates the effect of internal control effectiveness, the role of internal audit, internal audit authority level, the size of the internal audit, the size and complexity of the institution against corruption in the ministries/agencies in Indonesia. Effectiveness of internal controls seen from the number of internal control findings in the audit report of BPK, while the role of internal audit in an agency's internal control conducted by proxy with the number of findings of noncompliance in the audit report of BPK. The characteristics of institution seen from size and complexity of ministries/ agencies. The dependent variable is the corruption in the ministries/ agencies seen from the number of cases of corruption in the ministries/agencies in 2012-2014. This study used secondary data with samples of 249 ministries and agencies in Indonesia. The results show that the effectiveness of internal control, internal audit authority level form the organizational structure of the internal audit echelon I effect in reducing corruption. Total budget (in Rupiah) has positive effect on corruption. While the number of findings of non-compliance in the audit report of BPK, the number of internal auditors and the number of work units in ministries/agencies does not affect corruption.KEYWORDS : corruption, internal control, internal audit’s role, thesize of the ministries/agencies, the complexity of the ministries/agencies

Internal Audit and Fraud

2021 ◽  
pp. 216-229
Author(s):  
Safa Chemingui
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Three Dimensions ◽  
Fraud Triangle ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Internal Audit Function ◽  
Third Dimension ◽  
The One

The purpose of this chapter is to study the role of the internal audit function in detecting and preventing fraud. First, this chapter will determine the notion and types of fraud on the one hand and the fraud triangle that companies face and that internal auditors try to detect and address on the other hand. Second, a description of the notion of internal audit will be provided, along with the specificities of this function at the heart of companies. The procedure of internal control and the fundamental principles leading to its effectiveness will be identified. In this regard, the authors analysed the profile of internal auditor. Therefore, an internal audit function with competent staff would generate a good system of internal control and is able to maintain the internal audit's ability to detect fraud. Finally, the role of the internal auditor in preventing fraud is analysed with reference to three dimensions: The first dimension is preemptive. The second dimension is social and ethical. The third dimension is the practical dimension.

The Role of Accounting Mechanisms for Corporate Governance in Reducing Creative Accounting Practices in Telecommunications Sector Companies in Riyadh City: An Empirical Study: دور الآليات المحاسبية لحوكمة الشركات في الحد من ممارسات المحاسبة الإبداعية في شركات قطاع الاتصالات بمدينة الرياض: دراسة ميدانية

2020 ◽  
Vol 4 (15) ◽  
Author(s):  
Lamis Jameel Banasser, Maha Faisal Alsayegh
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
Internal Auditors ◽  
External Auditors ◽  
Riyadh City ◽  
Creative Accounting ◽  
Telecommunications Sector

The study aimed to identify the role of accounting mechanisms for corporate governance in reducing creative accounting practices in telecommunications sector companies in Riyadh city. A descriptive analytical approach was followed to conduct the field study. Sample of the study consisted of members of the audit committee, internal auditors, accountants from the surveyed telecommunications’ sector companies, and the external auditors in the audit offices that specialized on auditing the examined sample of companies. Questionnaire was used as a data collection method. Results showed that activating the role of accounting mechanisms for corporate governance can greatly contribute in limiting creative accounting practices. As they are controlling mechanisms that capable of protecting companies, shareholders and stakeholders from any manipulation or misleading information in the financial statements. Further, internal audit plays a major role in limiting creative accounting practices by examining and evaluating the effectiveness of the internal control system. Furthermore, the independence and competence of the external auditor and his commitment to the rules of conduct and ethics of the profession contribute greatly in limiting creative accounting practices in the examined companies. The study recommended the necessity of holding specialized training courses for members of audit committees, internal auditors and external auditors on methods of detecting creative accounting practices to combat and reduce them.

scholarly journals Audit Internal dan Efektivitas Pengendalian Intern Penjualan

2018 ◽  
Vol 3 (3) ◽  
pp. 1-11
Author(s):  
Radhi Abdul Halim Rachmat ◽  
Ivan Gumilar Sambas Putra ◽  
Ii Halilah
Keyword(s):  
Decision Making ◽  
Statistical Analysis ◽  
Internal Control ◽  
Descriptive Analysis ◽  
Internal Audit ◽  
Management Decision ◽  
Internal Auditors ◽  
Management Decision Making ◽  
Operational Activities

Sales activity plays an important role and needs to be controlled because it affects to the revenue. Sales control requires sales analysis that reveal undesirable developments need to be corrected. Internal Auditors who are not directly involved in operational activities can, therefore, assess all activities. Internal Auditors also provides objective information regarding sales data that will be the basis for management decision making. The purpose of this study is to: determine whether the internal audit on sales activities conducted by the company has been done adequately; determine whether the internal control over sales has been implemented effectively; and determine the role of internal audit in supporting the effectiveness of internal control sales. The authors perform hypothesis testing by doing descriptive analysis and statistical analysis. Based on the results, the effectiveness of internal control can be explained by the Internal Audit role of 63.2%.

scholarly journals PENGENDALIAN INTERNAL DALAM PENGHIMPUNAN DANA NASABAH DI PD.BPR BANK SALATIGA

ProBank ◽  
2020 ◽  
Vol 4 (2) ◽  
pp. 188-212
Author(s):  
Sarah Wahidatun Niswah ◽  
Aprina Nugrahesthy Sulistya Hapsari
Keyword(s):  
Risk Assessment ◽  
Risk Analysis ◽  
Internal Control ◽  
Phenomenological Approach ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Fraud Risk ◽  
Qualitative Descriptive ◽  
Descriptive Method

The purpose of this study is to look at the role of the internal auditors in  dealing with risks from customer fundraising activities in  PD.BPR  Bank Salatiga  has  been  running  effectively and  efficiently. Supervision of customer fund disbursement activities is very important in preventing the risk of fraud that may occur from the employee and the customer. Supervision carried out in preventing fraud risk starts from the risk assessment made by the internal auditor so that the impvolvement of the audit in assessing risk and handling the findings that occur can be resolved and provide recommendations related parties to the risk found. The reaserch method used is a qualitative descriptive method with a phenomenological approach in PD.BPR Bank Salatiga. Risk analysis mapping will be synchronized with possible events that have occurred so that the role of the internal auditors is known in assessing and resolving the risks that accur. From the risk analysis and findings, it was found that the role of the internal auditor in assessing and resolving the risks that occurred was limited to those who handled when the problems that occurred could not be resolved by the parties concerned. Internal control carried out by the bank in assessing the risks that might occur can be said to be quite good in assessing emerging risks and overcoming the risks that arise can be resolved.

scholarly journals The Risk Evaluation in Sharia Rural Banks: A Practices and Role Strengthening of Internal Auditor

2020 ◽  
Vol 3 (2) ◽  
pp. 151
Author(s):  
Muhammad Noor Ardiansah ◽  
Indah Anisykurlillah
Keyword(s):  
Conversation Analysis ◽  
Financial Reporting ◽  
Internal Control ◽  
Risk Evaluation ◽  
Control Unit ◽  
Control Force ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Risk Valuation

<p class="bdabstract">This study aims to examine the role of internal auditors on the business's risk valuation in Indonesia sharia rural banking. A qualitative approach used with the following three steps analysis. The first is the exploration of internal auditor function's existence, second focused on obtaining a depth conversation analysis, and, last, a confirmation to obtain the result's credibility. The results showed that internal auditors divided into two different important roles, included in directors' function, and the other was a supervisory role of the separated internal control unit, which both are controlling business risks in the operational, financial reporting, and compliance management. Internal auditors' role in the separated internal control force is more sustainable, consistent in all business aspects, and therefore focused on the potential business risks. Another role took comprehensive control, but it restricted by capacity and operational complexities.</p>

scholarly journals PERAN AUDITOR INTERNAL DALAM MEWUJUDKAN KEPATUHAN ORGANISASI PERANGKAT DAERAH (OPD) DI BIDANG PENATAUSAHAAN KEUANGAN PADA KANTOR INSPEKTORAT KABUPATEN MINAHASA UTARA

2020 ◽  
Vol 15 (4) ◽  
pp. 527
Author(s):  
Andini Anjali ◽  
Jenny Morasa ◽  
Stanley Kho Walandouw
Keyword(s):  
Data Collection ◽  
Internal Audit ◽  
Internal Auditor ◽  
Research Results ◽  
Internal Auditors ◽  
The Government ◽  
Financial Administration ◽  
Monitoring Performance

The role of internal audit in this case is that government internal auditors play an important role in the government system, namely as a supervisory function where the internal auditors are given the responsibility of examining, evaluating and carrying out the supervisory function. This study aims to determine the role of the Inspectorate as an internal government auditor in realizing the compliance of Regional Apparatus Organizations (OPD) in the field of financial administration. Data collection techniques using interviews and documentation. Based on the research results, it is known that the Inspectorate of North Minahasa Regency as the government's internal auditor has a very important role in supervising the financial administration sector. This is evidenced by the implementation of the supervisory function in internal audit, namely planning the supervision program, formulating policies and monitoring facilities as well as examining, investigating, testing and evaluating the supervisory duties as well as monitoring performance and finance by the Regional Apparatus Organization (OPD) in North Minahasa Regency. Apart from overseeing and examining the government internal auditors also play a role in detecting fraud.

scholarly journals MODEL PENGUKURAN KUALITAS AUDIT INTERNAL

2017 ◽  
Vol 17 (3) ◽  
pp. 299
Author(s):  
Ida Rosnidah
Keyword(s):  
Audit Quality ◽  
Internal Audit ◽  
Measurement Model ◽  
Primary Data ◽  
Private Companies ◽  
Internal Auditor ◽  
Internal Auditors ◽  
State Enterprises

Internal auditor’s independence is sometimes in doubt. This makes sense because the internal auditor is an integrated part of the organization. As a part of the organization, the internal auditor has a role to audited financial statements, give some suggestions and recommendations that can be used as the basis for making some decisions in the future. The lower of internal auditor’s independence has an impact audit quality, that can make the role of internal auditor degrade. So, the quality of internal auditor still becomes an important issue until  now. The purpose of this study is to establish a measurement model of internal audit quality based on the influencing factors not only independence, but also competence, professionalism and motivation. This study uses primary data by distributing questionnaires spread to 60 internal auditors who work  in  inspectorate, private companies, state enterprises (BUMN) and local government enterprises (BUMD) in Cirebon District and Municipalities. Data analysis method used is single stage multivariate model among variables/pathway analysis. The results show that the competence, independence, professionalism and motivation affect the quality of internal audit either partially or simultaneously, and competence contributes the most to the quality of the internal audit. Thus, this research model can be used to measure the quality of internal audit.

scholarly journals ДОКУМЕНТУВАННЯ РЕЗУЛЬТАТІВ ДІЯЛЬНОСТІ ВНУТРІШНЬОГО АУДИТУ БАНКУ

2019 ◽  
pp. 54-60
Author(s):  
О. М. Долінська
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Evidence Base ◽  
International Standards ◽  
Practical Significance ◽  
Basic Material ◽  
Professional Judgment ◽  
Internal Auditor ◽  
Internal Auditors ◽  
Audit Evidence

The article deals with the need to document of an assurance engagement of internal auditors of the bank and the organization of this process by the internal audit department. The purpose of the research is to analyze the latest requirements for documenting the results of the internal audit work in accordance with the International Standards for the Professional Practice of Internal Auditing. The object of research – the documents of an assurance engagement of internal auditors. The methods used of the research: analysis and synthesis, induction, methods of scientific knowledge. The hypothesis of research: a professional judgment is formed on documented provides receiving audit evidence for individuals who use an assessment of the activities of the internal audit department for specific purposes. The statement of basic material: the results of the analysis identify the documents used by the internal auditor to substantiate the findings of the audit findings. On the basis of the organization of the documentation process, the documents that selected to the implementation of an assurance engagement of internal auditors at each stage of the internal audit are selected and grouped. The originality and practical significance of the research is to develop of documents that will improve the organization and execution of an assurance engagement of internal auditors and will provide an evidence base for the results in the audit report. Conclusions of the research. Established that the implementation of documentation provides receiving audit evidence for the development of recommendations for decrease of risk and risk management, improving the system of internal control of banking activities and promoting the improvement of governance.

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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