Determinants of Internal Auditor Effectiveness and Its Impact to the Quality of Financial Reporting in Supporting Achievement of Sustainable Development Goals (SDGs) at Religious Universities in Indonesia

Abstract

Listen

Translate article

Objective: This study was conducted to determine the effect of personality, competence, objectivity, and performance on the effectiveness of internal auditors, and their impact on the quality of financial reporting in supporting the achievement of Sustainable Development Goals (SDGs). Methods: This study used a descriptive quantitative method where data were collected by circulating questionnaires to 84 state religious universities in Indonesia with a sample of 299 respondents. Data analysis was carried out using the Partial Least Square-Path Modeling (PLS-PM) approach. Results and Discussion: The results of the study prove that there is a positive and significant effect of personality, competence, objectivity and work performance on the effectiveness of internal auditors, personality is an intangible resource that can improve the function of the internal auditor framework, competent, skilled and experienced auditors can improve their audit performance and efficiency. The role of internal auditors in higher education that has been carried out so far is only as a verifier, reviewing budget absorption, reviewing the implementation of faculty and institutional activities, and has not conducted a comprehensive audit of financial statements as carried out by the inspectorate of the ministry of religion and the Supreme Audit Agency so that the achievement of Sustainable Development Goals (SDGs) cannot be maximized. Research Implications: This research is a development of knowledge that is expected to contribute to the development of Internal Audit science, especially in the public sector in this case the internal control unit of religious universities in Indonesia. Originality/Value: Personality variables are a development of Al-Bawwat at al's research (2021) where in previous researchers, Openness to experience, emotional stability, conscientiousness and extraversion became a variable while in this study each became an indicator, added with two other indicators, namely perseverance and trust (Sharma, 2018); Cherry & Susman (2023).