Audit Function Research Articles

The Influence of Independence and Understanding of Good Governance Auditor Government on the Performance of Government Auditors (Case Study on BPK RI of West Java Province)

The purpose of this research is to ascertain how the performance of government auditors at BPK RI West Java Representative is impacted by their independence and knowledge of good governance. This study employed a quantitative approach with a descriptive methodology. Primary data collected via survey distribution was utilized in this study. Probability sampling is used in the sampling method. Based on a minimum of two years of work experience as an auditor at BPK RI West Java Province, the chosen sample has been modified to the preset parameters. At the BPK RI West Java Representative, surveys were disseminated using Google Forms, and respondents who met the requirement of having 58 auditors responded. With the aid of SPSS 26, multiple linear regression analysis is the analytical method performed. The findings of this research suggest that government auditor performance is significantly and positively influenced by independence and knowledge of good governance.

The Effect of Independence, Role Conflict, and Internal-External Auditor Relationship on Audit Quality: Case at Universities in Indonesia

This study aims to conduct a comprehensive analysis of the factors that influence the quality of internal audits. Additionally, the study examines the effect of these factors on internal audit quality, with the role conflict variable acting as a moderator. The data used for analysis are questionnaire responses from 130 members of the Internal Supervisory Unit (Satuan Pengawas Internal/SPI) in Public Service Agency State Universities (Perguruan Tinggi Negeri Badan Layanan Umum/PTN BLU) in Indonesia. The Moderated Regression Analysis (MRA) technique is employed for hypothesis testing. The results indicate that the independence of SPI members has a positive impact on internal audit quality. However, the relationship between internal auditors and external auditors does not demonstrate a positive effect on internal audit quality. Furthermore, role conflict does not weaken the influence of SPI members' independence on internal audit quality. On the other hand, role conflict strengthens the effect of the relationship between internal auditors and external auditors on internal audit quality. The practical implication of this research emphasizes the significance of independence. SPI members should possess a strong sense of independence to resist undue influence or intervention from any party and to remain impartial in the execution of their duties. This finding underscores the importance of maintaining independence within the internal audit function.

Structure and functions of the United Nations in the field of budgetary relations

Considering the UN in terms of its attribution to the main international organizations in the system of subjects of budgetary relations, it is necessary to explore the main activities, but not the international organization as a whole, but by studying the powers and activities of each of its structural institutions.
 As already mentioned, the highest UN institution, which has a wide range of powers, is the General Assembly. It should be noted that the General Assembly has the power to consider the general principles of cooperation in support of international peace and security, including disarmament and arms regulation. In addition, its competence may include any problematic issues that arise in the way of achieving international peace and security, research and development of recommendations in the field of education, health, promotion of human rights and fundamental freedoms without discrimination against signs of racial, sexual, linguistic, religious or other affiliation.
 A key role in the UN system is played by the Security Council, which exercises its powers on a permanent basis and focuses its activities on regulating international peace and security policy. It should be noted that the UN Security Council is responsible for the peaceful settlement of international conflicts, the prevention of military clashes between states, the cessation of acts of aggression and other violations of peaceful relations between states.
 The economic recovery and development of infrastructure involves the reconstruction of destroyed infrastructure facilities, in order to ensure the receipt of daily services, as well as support for small and medium-sized businesses in the field of entrepreneurship.
 The UN has financial regulations and rules that govern the use of its funds, including procurement and accounting procedures. The UN also has an internal audit function to ensure that its financial management is transparent and accountable.
 In addition to its regular budget, the UN also has programmatic budgets for its various activities, such as peacekeeping missions, humanitarian assistance, and development programs. These programmatic budgets are funded through separate mechanisms and are subject to specific reporting and accountability requirements.

Audit committee oversight and bank financial reporting quality

AbstractThis study investigates the impact of audit committee oversight on the financial reporting quality of US bank holding companies. To overcome identification concerns, we use Section 165 h of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which requires publicly traded bank holding companies with assets exceeding $10 billion to have separate audit and risk committees. We utilise a difference‐in‐differences framework where our treatment group comprises bank holding companies that were required to separate audit and risk oversight functions following the introduction of Section 165 h and our control group comprises counterparts that already had separate audit and risk committees prior to the passage of Section 165 h. We estimate the difference in the behavior of treated bank holding companies between the pre‐ and post‐implementation period of Section 165 h with the same difference in the behavior of control group counterparts and find that the separation of audit and risk committees leads to an improvement in financial reporting quality. We attribute the observed improvements in financial reporting quality to the increased focus of audit committees arising from a reduction in the volume and complexity of tasks undertaken following the implementation of Section 165 h.

The Effect of Gender Differences, Locus of Control, and Seniority Auditor on Audit Judgment: Empirical Studies in East Jakarta Public Accounting Firms

This study aims to examine the effect of Gender, Locus of Control, and Senior Auditor on Audit Judgment. The sample in this study were auditors who worked at the East Jakarta Regional Public Accounting Firm. This research is quantitative. This study used a questionnaire given or distributed directly by researchers to auditors who work in several East Jakarta KAPs by visiting the office. Data were analyzed using multiple regression. The results of this study indicate that 1) Gender has no effect on audit judgment, 2) Locus of Control has a positive influence on audit judgment, 3) Seniority Auditor has a positive influence on audit judgment, and 4) Gender, Locus of Control, and Seniority Auditor simultaneously affects the audit assessment. This research implies that it can be used as development materials and knowledge in accounting, especially in auditing, especially in the field of audit interest judgment. For the development of science, it is better to review an auditor's performance in making an audit judgment to identify new factors as possible influences on audit judgment.

Factors Affecting the Quality of Financial Statements on Lembaga Perkreditan Desa in Payangan Regency

The purpose of this study is to find out the effect of compliance with accounting standards, information system support, internal audit functions, leadership ethics and level of accounting understanding on the quality of financial Statements. The population of this study was 93 respondents in LPD Payangan Regency. The results of this study indicate that compliance with accounting standards, internal audit function, leadership ethics have a positive effect on the quality of financial Statements, while information system support, and the level of accounting understanding have no effect on the quality of financial statements. Further research can develop this research by using other variables that in theory have an influence on the quality of financial statements, such as professionalism and work experience.

Audit partner gender and the COVID-19 pandemic: the impact on audit fees and key audit matters

Purpose The purpose of this study is to analyze the influence of the COVID-19 pandemic on audit fees and the reporting of key audit matters (KAMs). Additionally, this study also looks into potential differences in the behavior of male and female audit partners during this period, adding to the existing research on gender's effect on different elements of the audit process. Design/methodology/approach This study used a sample of all FTSE 350 firms from before the COVID-19 pandemic and during the pandemic. It analyzed the data using Ordinary Least Squares regression analysis to test its hypotheses. Findings This paper provides early evidence on the impact of the COVID-19 pandemic on audit fees and KAM disclosures in the UK. The results of this study show an increase in audit fees during the pandemic and greater detail in the reporting of KAMs, with no significant difference between male and female audit partners. These findings will be of interest to audit firms and regulators as they assess the performance of auditors during the pandemic and evaluate the expanded audit report's effectiveness in providing sufficient information to financial statement users. Originality/value This study provides first-of-its-kind empirical evidence on how auditors in the UK reacted to the COVID-19 pandemic. The findings of this study will be of interest to audit firms, regulators, such as the Financial Reporting Council, and other stakeholders as they evaluate the performance of auditors during the crisis period. The results will help regulators assess the effectiveness of the expanded audit report in providing sufficient information during a time of heightened risk and scrutiny.

Enhancing the Competency Development Program for New Recruits: A Case Study at Internal Audit & Risk Management Function

The pandemic created unsettling vulnerability as organization accelerated the shift to digital operations. One bright spot is that asset misappropriation, while still a top category of fraud, was down in the last 24 months perhaps due to more employees working remotely, with limited access to company assets. At the same time, remote working increased risks beyond just digital security. Hence, it is important to have effective internal controls to identify and prevent any kind of fraud. The increasing need for recruiting strong internal audit and risk management functions especially in public company is due to several factors, including increased regulatory scrutiny, greater stakeholder demands for transparency and accountability, and the growing complexity of business operations. With the increasing number of public companies, there is a greater need for effective internal controls and risk management systems to ensure financial reporting accuracy, prevent fraud, and meet regulatory requirements. Internal audit and risk management improve governance, decision-making, and identify risks for organizations. Strong functions require adequate manpower, trained personnel, and resources for effective performance. Group Audit and Risk Management (GARM) in one of public company, working on Internal Audit and Risk Management (IARM). To ensure GARM fulfils its responsibilities as a corporate center, they define Key Performance Indicators (KPIs) that are reviewed semi-annually by the Board of Directors (BOD). Unfortunately, one of the KPIs related to advisory and supporting roles, namely supporting the fulfilment of Group IARM manpower requirements, has not been met since 2013. The purpose of this study is to identify the root cause of the decrease in new recruit manpower fulfilment requests from Internal Audit and Risk Management functions in subsidiaries company and enhance the existing competency program in order to increase participation from Internal Audit and Risk Management functions. Using design thinking method and conducting in depth interview author may determine framework to enhance the programs that are more relevant to the competency needs.

Social Audit Performance of Cooperatives in Northeastern Cagayan, Philippines: A Study on Compliance with RA 9520

Objective: This research aimed to evaluate the social audit performance of cooperatives in Northeastern Cagayan, Philippines, focusing on their compliance with RA 9520, the Philippine Cooperative Code of 2008. The study assessed cooperatives' fulfillment of social responsibility and governance obligations. Theoretical framework: The study was based on the principles of social responsibility and cooperative governance. It aimed to explore how cooperatives in the region integrate these principles into their operations and assess their compliance with the legal requirements outlined in RA 9520. Method: The study employed a descriptive research design, utilizing survey questionnaires and interviews with cooperative officers to collect data from cooperatives in Northeastern Cagayan. This approach provided a comprehensive assessment of the cooperatives' social audit performance. Results and conclusion: The study found that most of the cooperatives in Northeastern Cagayan were micro cooperatives with a focus on clean and green initiatives, health and sanitation, and providing goods to the indigent. However, only 80% had allocated a budget for social audit requirements, and lack of sincerity and budget constraints were identified as main challenges in implementing social responsibility programs. Implications of the research: The study's practical implications for cooperatives include code compliance and social responsibility programs. Adequate budget allocation and sincere implementation promote sustainable development. Cooperatives play a vital role in this endeavor. Originality and Value: This study adds to literature by examining social audit performance of cooperatives in Northeastern Cagayan, focusing on compliance with RA 9520 and effectiveness of social responsibility programs. Findings guide future research in this area.

Optimizing the Role of the Regional House of Representatives (DPRD) Deliberative Bureau: A Systematic Literature Review

The Deliberative Bureau (Banmus) plays an important role in ensuring the smooth and effective work of the DPRD in making quality decisions. Optimizing the role of the DPRD Deliberative Bureau has great significance in improving the quality of legislative performance at the regional level. This study seeks to do discussion various steps and strategies that can be taken to optimize the role of the DPRD Deliberative Bureau. The literature search process was carried out on various databases (PubMed, Web of Sciences, and Google Scholar) regarding optimizing the role of the consultative bureau of the Regional House of Representatives. This study follows the preferred reporting items for systematic reviews and meta-analysis (PRISMA) recommendations. Efforts to optimize the role of the DPRD Deliberative Bureau can be made in a number of ways, namely: strengthening the role of legislation by increasing the capacity of members of the DPRD Deliberative Bureau in drafting and supervising regional regulations (perda), as well as involving stakeholders and the public in the perda-making process through dialogue and public consultation. Increasing the understanding of members of the DPRD Deliberative Bureau about the political system, democratic principles, and legislative tasks through political education programs, carrying out their duties in a transparent and accountable manner through mechanisms such as live broadcasting of the DPRD Deliberative Bureau meetings, regular publication of activities, providing access to information to the public, and establishing a complaint mechanism and handling complaints from the public. Increasing cooperation and synergy between the DPRD Deliberative Bureau and local government through the establishment of working groups, coordination meetings, dialogue forums, and synergy in regional development planning and budgeting. Carry out the oversight function more effectively through the mechanism of routine monitoring meetings, field visits, local government performance audits, inquiries, and interpellations, as well as reporting mechanisms and complaints from the public.

Internal audit in microfinance institutions‐ evidence from transitional and developing economies

AbstractMicrofinance institutions (MFIs) are hybrid organisations that strive to balance business and social goals. This paper examines the determinants of the internal audit (IA) function in MFIs, with particular emphasis on the business goals, specifically efficiency, productivity, regulation and the gross portfolio yield. We also investigate whether the establishment of an IA function is associated with MFI's focus on their social objectives relating to outreach, and women director appointments. Multivariate regression results from 1025 MFIs across 63 countries show that MFIs' focus on their social objectives is related to their propensity to establish an IA function. Thus, outreach and women director appointments are positively related to the establishment of an IA function. Similarly, in terms of the performance emphasis, the gross portfolio yield (inefficiency) increases (decreases) the likelihood of establishing an IA, but productivity and regulation have no effect. The findings suggest that MFIs' dual focus on social and business objectives impacts the establishment of internal audits. The results are robust to various measurements and estimations.

A maturity level assessment of the use of technology by internal audit functions: a comparative analysis of the Federal Government of Canada

This work presents the results of the empirical study conducted on internal audit (IA) functions in the Federal Government of Canada (after this Federal Government) to measure generalized audit software (GAS) use practices. The study empirically gauged the function maturity of the Federal Government Internal Audit. It sought to provide information on the current state and usage of GAS and the future needs of audit functions across the federal government. The current maturity assessment (2022) is phase two; phase one (2017) was completed five years ago. This work enables us to see if progress has been made in data analytics and provides valuable information on where to focus efforts to achieve best practices. People, processes and technology form the foundation of effective internal auditing. It is essential to continue assessing progress in these areas. This paper focuses on these three aspects, which contribute equally to the overall assessment of the maturity of GAS use by internal auditors in the Federal Government. The comparison drawn from the empirical findings indicates that there has not been significant progress in any area or overall maturity levels since the initial study in 2017. A comprehensive discussion of the results leads to policy recommendations for shaping the maturity-level assessment of future GAS use. At the same time, by considering Canada as an advanced country case study, the research aims to provide a lessons-learned experience from an organizational learning perspective for other countries and organizations while contributing to decision-making processes.

Pengaruh Audit Operasional Dan Motivasi Kerja Terhadap Efektivitas Pelayanan Kesehatan Dirumah Sakit Mujaisyah

The purpose of this study was to analyze the effect of operational auditing and work motivation on the effectiveness of hospital health services. This study uses a quantitative approach, using primary data through distributing questionnaires. The sample of this research is the employee of Mujaisyah Hospital, Palopo City. Two variables in this study, namely operational audit and work motivation as independent variables, and the effectiveness of health services in hospitals as the dependent variable. The analytical method used in this study is multiple linear regression analysis and the data analysis tool used in this study is Statistical Products and Services Solutions (SPSS) type 26 for windows. The results of this study can prove that operational audit has a positive effect on the effectiveness of health services in hospitals with a sig value of 0.009 <0.05, so it can be concluded that H1 is accepted. In addition, this study also proves that work motivation has a positive effect on the effectiveness of health services in hospitals with a sig value of 0.006 <0.05 so it can be concluded that H2 is also accepted. The two independent variables above have a positive effect on the dependent variable.

Jenis Kecerdasan dan Kinerja Audit: Gender sebagai Variabel Moderasi

This study aims to assess the effect of different types of intelligence on auditor performance with gender as a moderator. The types of intelligence include emotional intelligence and adversity. The research method used is quantitative with a population that includes 121 auditors who work in the Jakarta area Public Accounting Firm and uses the Partial Least Square SEM (PLS-SEM) method to assess the effect of the independent variables on the dependent variable. This research on the adversity intelligence variable uses the measurement developed by Stoltz (1997). This study shows that emotional intelligence and adversity affect audit performance and gender can moderate the independent variables. Auditors who have a qualified level of emotional intelligence can manage their emotions appropriately and know exactly what to do when faced with various situations so that their performance levels can be stable and effective. When an auditor has a high level of adversity intelligence, he will be able to survive in situations of unreasonably dense activities and working hours. This research is useful as a reference for auditors or other professions to be able to find out that there are psychological factors that can affect performance and add to the literature and recommendations for policy makers regarding gender equality in Indonesia.

Analisis Audit Operasional atas Persediaan Barang Consumable Studi Kasus pada PT. Pipa Mas Putih

This study aims to determine the impact of the implementation of an operational audit of the inventory of goods at PT. Pipa Mas Putih Duri. The data analysis method used in this research is the descriptive qualitative research method. Based on the results of the research that has been analyzed based on interviews and direct observation of the object of the research, PT. Pipa Mas Putih has carried out an operational audit properly, as evidenced by the fulfillment of the stages of the operational audit stages. Furthermore, PT Pipa Mas Putih Duri already has several procedures regarding the management of goods inventory. Based on the checklist carried out, the operational audit and inventory management at PT. Pipa Mas Putih Duri are already running well.Keywords: Operational Audit, Management, Inventory

Pengaruh Kecerdasan Spiritual Terhadap Kinerja Auditor Pada Badan Pemeriksa Keuangan Republik Indonesia (BPK-RI) Perwakilan Provinsi Sulawesi Selatan

Abstract: This study aims to determine the influence of Spiritual Intelligence on Auditor Performance at the Audit Board of the Republic of Indonesia Representative of South Sulawesi Province. The sampling technique uses the Nonprobability Sampling technique (convienence sampling) so that a sample of 37 respondents was obtained. Data analysis methods for hypothesis testing are performed using simple regression tests and t tests. The results of this study show that spiritual intelligence has a positive and significant effect on auditor performance. The better the spiritual intelligence, the better the auditor's performance. The r square value obtained has a moderate magnitude, this is because there are still some respondents who answer with hesitant answers and disagree on some statements.

Studi Empiris Tentang Kompetensi Auditor Dalam Melakukan Fungsi Audit Internal Pada Bank Pembiayaan Rakyat Syariah

Auditor competence is important in supporting the quality of the implementation of internal audits, including the Islamic People's Financing Bank (BPRS). This study aims to explore aspects of auditor competence, especially in performing the internal audit function at BPRS. Specifically, this study seeks to reveal which aspects or performance criteria are most important and which need a lot of improvement in the function area of carrying out the internal audit function in BPRS. Research instruments that adopt national work competency standards (SKKNI number 38 year 2017) are distributed online to auditors from BPRS within the Province of East Java. A total of 41 auditors were respondents in this study. By using a quantitative method, this research is more descriptive, especially in testing the constructs about carrying out the audit function in the BPRS with the national work competency standards that apply in Indonesia. The results reveal that the instruments used are valid and reliable. Descriptively, the implementation of the audit function at the BPRS is in a good category, but there is still some potential for room for improvement and improvement in the quality of auditing at the BPRS in the future.

Corporate Governance, Effectiveness of Internal Audit Function and Fraud in Islamic Banking in Indonesia

Corporate Governance, Effectiveness of Internal Audit Function and Fraud in Islamic Banking in Indonesia

Effect Of Family Ownership In The Relationship Between Corporate Governance Mechanism And Earning Management

Financial statements are the basis for many parties' decision-making in describing the condition of a company, so companies must present the quality of the information therein. This study examines the relationship between corporate governance mechanisms and earning management and how family ownership influences this relationship. This empirical study uses companies on the Kompas 100 index from 2015 to 2019 to be tested using Generalized Least Squares(GLS). This study finds that the board of commissioners affects earnings management, and family ownership strengthens the role of the board of commissioners in suppressing earnings management. This study strengthens the literature on family ownership in companies. Internal auditors can consider the implication of increasing the effectiveness of internal audits to produce more accurate quality financial reports. In addition, the implications of this study also recommend restructuring the internal audit function, especially its role in management and governance, to be more objective and also impartial.

Insight and Oversight Function of BPK to Improve the Management of Indonesian Migrant Workers

This research discusses the role of BPK through insight and oversight function to improve the management of the Indonesian Migrant Workers (PMI) program. The study was conducted using a qualitative approach by analyzing the contents of the performance audit report as well as the viewpoint/opinion of BPK regarding Indonesian migrant workers released by BPK from 2010 to 2021. Various performance audits are carried out periodically by BPK by targeting PMI recipient countries with multiple characteristics, which determine different strategies regarding the dynamics of policies in PMI recipient countries. This study concludes that BPK plays a significant role in encouraging the improvement of PMI management through various performance audit recommendations and viewpoints/opinions. These audit recommendations have carried out the insight and oversight functions related to governance and implementation of the PMI program, as well as policies that need to be improved accordingly. Traditionally seen as only conducting financial audits, performance audits conducted by BPK, primarily through insight and oversight functions, can improve government management related to the Indonesian Migrant Workers program.