INTERNAL AUDIT: THE APPLICATION OF RISK MANAGEMENT AND ELECTRONIC CHANNELS INTERNET BANKING THROUGH THE AUDIT MANAGEMENT SYSTEM IN THE QUALITY OF FINTECH GOVERNANCE IN BANKING INDUSTRY

Ika Barokah Suryaningsih,Yuani Putrihandani,Kristian Suhartadi Widi Nugraha

doi:10.24123/jmb.v17i2.337

Abstract

This article aims to prove the role of internal auditors in providing added value in improving the quality of governance in the banking sector. The role of information technology in the banking industry sector is very dominant in service operations. This condition requires banks to apply their prudential principles by guaranteeing the implementation of risk management and electronic channel internet banking through audit management control systems. This study used an explanatory research approach with census data collection methods. The object of this study was the internal auditors of a branch office of one of the national private banks in Jember. The data of this study were the results of the response of 41 internal auditors of various branches and sub-branches in Jember Regency and supported by a literature review of the annual report of banks’ internal audit performance with a path analysis data processing tool. The results of the study showed that the application of risk management and electronic channel internet banking had an effect on the audit management system and the quality of financial technology governance.

Highlights

Artikel ini bertujuan untuk membuktikan peran auditor internal dalam memberikan nilai tambah dalam meningkatkan kualitas tata kelola di sektor perbankan
The risk faced by banking institutions becomes more complex as more and more transaction conducted based on the application of a financial technology-based system of information technology (Fahmi, 2013; Darmawi, 2014)
Some examples of electronic channel based on information technology are: Automatic Teller Machine (ATM), Banking Application systems, Real-Time Gross Settlement System, Electronic Clearing System, and Internet Banking itself

Summary

Introduction

Artikel ini bertujuan untuk membuktikan peran auditor internal dalam memberikan nilai tambah dalam meningkatkan kualitas tata kelola di sektor perbankan. Hasil penelitian menunjukkan bahwa penerapan manajemen risiko dan saluran elektronik internet banking berpengaruh pada sistem manajemen audit dan kualitas tata kelola teknologi keuangan. The collaboration between the management, organization, and technology is necessary to create information systems solutions in improving the quality of service and reduce the cost (Loudon and Loudon 2015). It became the solution of business challenges in the digital age, where banks compete to provide and improve its services through the features of financial technology. BI regulation became the foundation of banking in forming the internal audit division in each central office, branches, and subbranches

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