Abstract
The purpose of this study was to determine and analyze the effect of role ambiguity, role conflict and auditor competence on auditor independence and internal audit quality as well as the effect of auditor independence and audit planning on internal audit quality. It is also to empirically analyze the mediating effects of auditor independence and audit planning in the relationship between independent variables to dependent variable of internal audit quality. The population of this research is auditor inspectorate in Central Sulawesi Province. Sampling used purposive sampling technique with a total of 202 samples. The data were analyzed using the Structural Equation Model (SEM) technique. The results showed that role ambiguity and role conflict had a significant negative effect on auditor independence, but did not significantly affect the quality of internal audit. Auditor competence has a positive effect on auditor independence and internal audit quality. The findings also pointed out that auditor independence and audit planning have a significant positive effect on internal audit quality. Statistical testing of mediating variables showed that auditor independence mediates the relationship between role ambiguity and role conflict and the quality of internal audit. Likewise, mediating variables of auditor independence and audit planning have empirically proven to strengthen the effect of auditor competence on the quality of internal audit.
Highlights
Internal auditors play a role in the implementation of Good Corporate Governance (GCG) both for company and government
It means that the lower the value of role conflict will encourage increased auditor independence, so that it will improve the quality of internal audit
The findings revealed that auditor independence mediates the effect of auditor competence on internal audit quality
Summary
Internal auditors play a role in the implementation of Good Corporate Governance (GCG) both for company and government. It can assist management in improving company performance, especially from the control aspect. It is very important in increasing compliance in applying the principles of good governance. An effective internal audit process is critical to the success of good governance. Good governance is very important to achieve sustainable growth and development in an organization or country [1]. Guruswamy [2] states that the internal audit function can be viewed as the main gate to adequate corporate governance and financial reporting
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