Abstract
The purpose of this study is to examine the influence of audit planning, fieldwork audit, audit reporting, follow-up action of the audit results, the auditor team competence, and independence of the auditor team on the internal audit quality at the General inspectorate of the Ministry of Finance, Indonesia. The study uses a research instrument in the form of a questionnaire which is submitted to the auditor team of the Inspector General and the head of office as the auditee in the Ministry of Finance. We also conducted interviews with senior auditors at the General Inspectorate and officials as the auditee at the Ministry of Finance. The sample is analysed by multiple regression analysis. The results show that the internal audit quality according to the auditor team perception is affected by audit planning, audit reporting, and auditor team competence. Fieldwork audit, follow-up action of the audit results, and the independence of the auditor team do not affect the internal audit quality. From the auditee’s perception, the internal audit quality is affected by audit planning, fieldwork audit, and the competence of the auditor team. Meanwhile, the reporting of audit results, the follow-up action of the audit results, and the independence of the auditor team do not affect the internal audit quality at the General inspectorate of the Ministry of Finance.
Highlights
This study aims to examine the influence of audit planning, fieldwork audit, audit reporting, follow-up action of the audit results, the auditor team competence, and independence of the auditor team on the internal audit quality at the General Inspectorate of the Ministry of Finance
From the auditee’s perception, the results show that Audit planning, Fieldwork audit, and Auditor competence have positive impacts on Internal audit quality
Starting from the results in specialized literature, we tested six research hypotheses regarding the perception related to the correlation between audit planning, fieldwork audit, audit reporting, follow-up action of the audit results, auditor team competence, and independence of the auditor to the internal audit quality, from the auditor’s perspective
Summary
This study aims to examine the influence of audit planning, fieldwork audit, audit reporting, follow-up action of the audit results, the auditor team competence, and independence of the auditor team on the internal audit quality at the General Inspectorate of the Ministry of Finance. Internal audit must identify the goals and objectives of the auditee, establish the significant criteria for achieving them, and examine and measure these criteria to determine how the auditee action has reached its goals and objectives (Dittenhofer, 2001). The phenomenon of the poor quality of audit in audit practice is affecting the level of stakeholders’ satisfaction toward audit performance, as it was the case of the Public Accountant Firm (PAF) Arthur Anderson and Enron in the United States of America in 2001. PAF Arthur Andersen violated the appropriate professional service standards because it did not perform its professional duties properly, or as required by the relevant technical and professional standards
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