PENGARUH INDIVIDUAL RANK PENGALAMAN KERJA DAN FIRM SIZE TERHADAP HASIL KERJA AUDITOR INTERN (Studi Terhadap Auditor Intern Emiten Sektor Manufaktur Di BEI)

Abstract

Financial fraud committed by companies in Indonesia and other countries is the reflection of the inability of management in maintaining and improving its internal control. If the internal audit can be properly implemented, it will offer a significant contribution in improving the process of corporate governance, risk management, and management control. The objectives of this research are to obtain empirical evidence and better understanding concerning: (1) ) the correlation between individual rank with working experience and firm size in manufacturing sector at the JSX; (2) the influence of individual rank, working experience, and firm size, on the internal auditors' outputs of public companies in manufacturing sector at the JSX either both partially or simultaneously. The type of research employed in this study is causal relationship by using the census method for 120 internal auditors of public companies in manufacturing sector at the JSX. The data examined in this study consist of two types, namely primary and secondary data. Reliability and validity tests were conducted to examine the questionnaires. This study used SEM (Structural Equation Modeling) in examining the correlation as well as the effect of the variables being analyzed. The results of this research revealed that: (1) there is correlation between individual rank and internal auditors' working experience (R2 =0.69), between individual rank and firm size (R2 = 0.69), and between internal auditors' working experience and firm size (R2 =0.52); (2) individual rank, working experience, and firm size, partially influence the internal auditors'output for which the levels of influence are 3%, 8%, and 3%, , respectively, whilst their simultaneous effect is 28% . Key words: Individual rank, working experience, firm size, internal auditors' output.