effect of independence, professionalism, and experience of internal auditors on fraud prevention with organizational culture as moderating variable

This study aims to examine the effect of independence, professionalism, and experience of internal auditors on fraud prevention with organizational culture as a moderating variable. The research data were collected through questionnaires, the research respondents were the internal auditors of Rural Banks in Bali. The method of determining the sample using purposive sampling with the criteria of internal auditors who have more then a year work experience, with 140 respondents. The data analysis technique used in this research is Path Analysis (SEM-PLS). The results showed that the independence, professionalism, and experience of internal auditors had a positive effect on fraud prevention; and organizational culture strengthen the positive influence of independence, professionalism, and experience of internal auditors on fraud prevention.

Effect of Computer Assisted Audit Tools on Corporate Sustainability

The literature is fertile in studies that examine the determinants of internal and external auditors’ adoption of computer-assisted audit tools and techniques (CAATs), often ignoring their practical effects on audit quality and organizational performance. This study provides novel evidence on the type of CAATs used by internal auditors, tests the effect of their adoption on corporate sustainability, and explores the moderating effect of organizational characteristics. In this paper, we used data from Portuguese internal auditors collected through a survey, whose research hypotheses were analyzed by the partial least squares–structural equation modeling technique. We found that internal auditors use CAATs moderately in the exercise of their tasks. The results of our study show that there is a strong and positive effect of the use of CAATs by internal auditors on fraud detection in the purchase-to-pay business process, and that the intensity of this relationship is not influenced by the type and size of the entity. This study complements previous research and provides support to practitioners’ decisions that can boost the use of CAATs in internal auditing to make organizations more sustainable.

Auditor Evaluation and Reporting on Cybersecurity Risks

Tremendous improvements in information networking capabilities have brought with them increased security risks resulting from the deterioration of the ability of a physical layer of computer security to protect an organization's information system. As a result, audit committees have had to deal with new security issues as well as the need to understand the cyber perpetrator and ensure the proper training of employees to consider cybersecurity risks. Standard setters including the Institute of Internal Auditors and the American Institute of Certified Public Accountants have issued guidance about lines of defense and reporting on an entity's cybersecurity risk management program and controls, respectively. Each of these topics is considered along with how cybersecurity guidance from COBIT, the National Institute of Standards and Technology, and the Center for Internet Security can be mapped into five cyber infrastructure domains to provide an approach to evaluate a system of cybersecurity.

Assurance for Change Management With COBIT 2019 and CMMC Maturity Frameworks

As technology plays an ever-increasing role in carrying out structured tasks in today's society, people are given more time to focus their attention on higher levels of service and personal development. However, technology is in a constant state of change and assurance services are needed to help ensure that technology changes are accomplished properly. The Institute of Internal Auditors has identified 10 steps that can be used to effectively implement changes in technology. This process and its accompanying internal controls can be assessed through an internal audit function that considers issues of both functionality and security. In addition, continuous improvement of the change management process for technology can be evaluated though capability/maturity models to see if organizations are achieving higher levels of accomplishment over time. Such models include the COBIT 2019-supported capability maturity model integration (CMMI) model and the cybersecurity maturity model certification (CMMC) framework used by defense industrial base organizations.

Analysis of potential factors influencing audit quality: The moderating effect of time budget pressure

In a pandemic situation the audit sector, either government or public, is affected in terms of audit implementation, especially in carrying out field audits. However, auditors can tackle this issue by applying new methods. Therefore, the purpose of this study is to examine the effect of auditor skepticism, auditor competence, understanding of information systems, and auditor motivation on audit quality. It also assesses whether time budget pressure has a moderating effect on the relationship between auditor competence, auditor motivation, and audit quality. 58 questionnaires were issued to government internal auditors in the Principal Inspectorate of Indonesia’s Supreme Audit Institution in the AKN V and VI units, and the data were acquired using a Google Form. SmartPLS software version 3.0 was used to analyze data applying Structural Equation Modelling (SEM). Purposive sampling was used in this investigation, which took a quantitative approach. The paper uses the theory of planned behavior and the inverted U theory. The results conclude that auditor skepticism, auditor competence, and understanding of information systems have a significant positive effect on audit quality. Auditor motivation has no significant positive effect on audit quality. Furthermore, time budget pressure does not moderate the effect of auditor competence and auditor motivation on audit quality. This study is expected to provide valuable input to improve the audit quality and assist auditors in the AKN V and VI units uphold professionalism and integrity in carrying out audit examinations even under the condition of a pandemic.

Review of The Role Company Supervision Mechanism in Risk Management Implementation

This study reviews the supervisory mechanism carried out by the company in the implementation of risk management. This research is qualitative research with literature study method. As a result, internal auditors, audit committees and management accountants work together in supervising the implementation of risk-based audits. Internal auditors have a weak contribution because they prefer a supervisory approach so they are supported by the audit committee. The audit committee supervises the internal auditors and provides suggestions for the next audit process so that it can cover high-risk areas. Meanwhile, the external auditor supervises by ensuring whether the financial statements are presented fairly. This research contributes to expanding the study of the role of supervisory mechanisms in companies for the implementation of corporate risk management.

BEHAVIORAL FACTORS OF INTERNAL AUDITORS AND ENTERPRISE RISK MANAGEMENT EFFECTIVENESS ASSESSMENT OF MALAYSIAN STATUTORY BODIES

This study used the theory of planned behavior to examine the relationship between internal auditors’ behavioral factors and intention to evaluate enterprise risk management (ERM) effectiveness of Malaysian statutory bodies. Unlike prior literature, this study also included a test on individual attitude towards risk in addition to attitude towards behavior, subjective norms, and perceived behavioral control. Analysis on 108 received responses showed that subjective norms and perceived behavioral control had positive relationships with the intention to assess ERM effectiveness. Nevertheless, the influence of attitude was not substantiated. The results imply that attitude is not an important factor when individuals do not have total process ownership. Managers of statutory bodies and heads of internal audit departments need to shape internal auditor behavior by instituting social and administrative norms and instilling a positive perception about the ability to perform tasks within the organization. This study also shows that individuals have no total ownership in a process, thus focusing efforts on shaping individual attitude is not practical. This issue is critical because successful ERM implementation depends on internal auditors’ intention to evaluate its effectiveness. An effective ERM can reduce the risks of waste, inefficiencies, corruption, malpractices, and public–private partnerships associated with the public sector.

THE REMOTE AND AGILE AUDITING: A FRAUD PREVENTION EFFORT TO NAVIGATE THE AUDIT PROCESS IN THE COVID-19 PANDEMIC

This research aims to identify and navigate how auditors are able to find solutions to various obstacles that occurred in the audit process during the Covid-19 pandemic. This study uses a qualitative (non-positivistic) approach with this type of research focusing on systematic exploratory research of a pandemic covid-19 phenomenon and using descriptive analysis techniques and anticipatory condensation data from remote and agility audits. The method of data collection is carried out by interviews, observations and documentation with purposive sampling as a method of selecting research sources. Source triangulation and triangulation techniques are selected by researchers to ensure the validity of the data. The research sources are external and internal auditors from KAP leading in Indonesia and are foreign affiliated audit firm and internal auditors from companies that implement internal control of 5 people. The result of this study is that remote audit and agility audit can be used as a solution to navigate problems in carrying out the audit process and business disruption in the time of the covid-19 pandemic crisis. Remote Audit and Agility audit is an alternative way that can be used as a reference in conducting the audit process during the Covid-19 pandemic to still be able to realize Good corporate governance (GCG) and can quickly detect fraud. Real contributions that can be utilized by auditors are helping auditors find solutions in solving problems such as supervision in the form of asset misappropriation cases ranging from cash theft, misappropriation of cash receipts, fraud during disbursement, misuse of company asset inventory. and theoretical contributions to strengthen and enrich fraud pentagon theory, in addition, this research can also formulate a framework to realize Good corporate governance (GCG) and post crisis such as COVID-19.

Efek Burnout PAda Skeptisme Profesional Auditor Internal Pemerintah

This study analyzes the offect of burnout on the profesional skeptism of internal auditors. this study uses a survey method by colecting data through reseach insruments (questinares), the respondents of this study were 35 government internal auditors (Inspectorate of Southeast Sulawesi Province), The Results of the Regession analysis show tahi auditors in burout conditions influence profesional skepticism This study confirmas the validaty of cognitive dissounant theory in explaining the effects of burnout on the professional skepticism of internal auditors. dissounant auditors tend to do something to avoid it by making the most appropriate audit decisions. individuals who experince dissonance will encourage an atmosphere of discomfort/stress. auditors who experince discomfort/stress will reduce their professional ekepricism

Efek Burout PAda Skeptisme Profesional Auditor Internal Pemerintah

This study analyzes the offect of burnout on the profesional skeptism of internal auditors. this study uses a survey method by colecting data through reseach insruments (questinares), the respondents of this study were 35 government internal auditors (Inspectorate of Southeast Sulawesi Province), The Results of the Regession analysis show tahi auditors in burout conditions influence profesional skepticism This study confirmas the validaty of cognitive dissounant theory in explaining the effects of burnout on the professional skepticism of internal auditors. dissounant auditors tend to do something to avoid it by making the most appropriate audit decisions. individuals who experince dissonance will encourage an atmosphere of discomfort/stress. auditors who experince discomfort/stress will reduce their professional ekepricism.