EFFECT OF INTERNAL AUDIT QUALITY ON THE EFFECTIVENESS OF GOOD CORPORATE GOVERNANCE (CASE STUDY AT PT JASA RAHARJA)

Fajar Arya Adhitya Putra,Hadri Mulya

doi:10.31933/dijms.v2i2.440

Fajar Arya Adhitya Putra, Hadri Mulya

Open Access

https://doi.org/10.31933/dijms.v2i2.440

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Abstract

This study aims to examine the Effect of Internal Audit Quality on the Effectiveness of Good Corporate Governance which is seen from the Independence of Auditors, Professional Capabilities, Scope of Work and Examination at PT Jasa Raharja.The population in this study were all employees of PT Jasa Raharja which were divided into Employees of the Internal Control Unit, Head of Branches, Head of Division, Head of Internal Control Unit and Corporate Secretary of PT Jasa Raharja. Samples obtained by purposive sampling method were as many as 85 employees. The results of statistical tests show that the Quality of Internal Audit has a significant effect on the Effectiveness of Good Corporate Governance that is measured using variables such as Independence, Professional Capability, Scope of Work and Examination.

Highlights

The issue of Good Corporate Governance is a concern because it is expected to bring various benefits to the company
This study aims to examine the Effect of Internal Audit Quality on the Effectiveness of Good Corporate Governance which is seen from the Independence of Auditors, Professional Capabilities, Scope of Work and Examination at PT Jasa Raharja.The population in this study were all employees of PT Jasa Raharja which were divided into Employees of the Internal Control Unit, Head of Branches, Head of Division, Head of Internal Control Unit and Corporate Secretary of PT Jasa Raharja
The Indonesian Internal Auditor Professional Organization mentions the relationship between internal audit and good corporate governance in position paper # 1/2003, namely: "Internal Auditor Professional Organizations believe that an effective internal audit function is able to offer important contributions in improving the corporate governance process, risk management and management control, internal auditors are important support for commissioners, audit committees, directors and senior management in forming the foundation for the development of corporate governance ".The purpose of this study is to examine the effect of internal audit factors which include independence, professional ability, scope of work, and the Examination on the effectiveness of good corporate governance at PT Jasa Raharja

Summary

Introduction

The issue of Good Corporate Governance is a concern because it is expected to bring various benefits to the company. These benefits include: reducing risk, helping to ensure compliance with existing regulations, increasing leadership in the company, improving performance, helping companies that go public, increasing shareholder trust, and expressing social accountability clearly. The purpose of implementing good corporate governance is to encourage transparency in reporting on company operations both financial and non-financial.

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