The Determinants of the Effectiveness of Internal Audits with Management Support as the Moderating Variable

Abstract

Weak financial accountability reflects the lack of effectiveness of internal audits. The purpose of this research was to test and provide the evidence of the determinants of the effectiveness of internal audits at the Ministry of Marine Affairs and Fisheries (KKP). The samples of this research were 31 internal auditors and 31 KKP employees. This research was explanatory research. To test the hypotheses, the data of the research questionnaire data were analysed using Partial Least Squares (PLS) analysis tool. The results show that the relationship between internal auditors and external auditors, organizational independence, and auditee perceptions positively influences the effectiveness of internal audits. However, audit professionalism does not have a positive effect towards the effectiveness of internal audits and the management support cannot be a moderating variable. This finding can open the horizons of interested parties, especially KKP leaders, to consider policies that can improve the effectiveness of internal audits to improve organizational goals and performance.