Management Audit Research Articles

API Common Security Threats and Security Protection Strategies

This study analyzes the core role of APIs in modern digital ecology and the security threats they face, such as information leakage and overstepping access, and explores their security risks for technologies such as RESTful and GraphQL. It proposes to use OAuth/JWT authentication mechanism to strengthen access control, adopt HTTPS/TLS to secure data transmission, and combine with API gateway to defend against DDoS attacks. It also emphasizes the importance of fine-grained privilege management and log auditing. The study provides strategic guidance for improving API security protection and looks forward to the trend of intelligent protection.

APIP's Role in SPIP to Support Defense Force Development

Law No. 1 of 2004 mandates accountable and transparent management of state finances in Indonesia. To ensure compliance, efficiency, and good governance, the effective implementation of APIP (Aparat Pengawasan Intern Pemerintah or Internal Government Auditors) is crucial. Enhancing the role of APIP is necessary to address the low quality of state financial management, ensure accountability, and support bureaucratic reform for transparent and efficient governance. Purpose: This study aims to analyze the role of APIP within the SPIP (Sistem Pengendalian Intern Pemerintah or Government Internal Control System) framework to support the development of Indonesia's defense forces. The research employs a qualitative descriptive method to explore the role and impact of APIP in state financial management and defense force development. Results: The study reveals a significant improvement in the capabilities of APIP over recent years. In 2015, 85.23% of APIP units were only at capability level 1, which indicates basic operations without full adherence to professional standards. By 2022, 54.74% of APIP units had reached capability levels above 3, indicating compliance with professional standards, enhanced risk management, and improved organizational governance. This increase in capability supports more robust oversight, particularly in the Ministry of Defense and the Indonesian Armed Forces, where APIP plays a vital role in overseeing budget management, the modernization of defense equipment, and the improvement of human resources. Conclusion: While the improvement in APIP capabilities enhances effectiveness, the assessment of efficiency in state financial management remains underemphasized. Addressing this gap is essential for the country's financial reforms aimed at improving public services and ensuring fiscal sustainability. APIP not only maintains integrity, transparency, and accountability but also supports the development of defense forces through comprehensive financial, management, and social audits. The focus on both efficiency and effectiveness is critical to strengthening the relevance of these findings in achieving sustainable governance and defense objectives.

The role of internal control and audit in improving the performance of government institutions: A case study of the Iraqi housing fund

This study aimed to assess the impact of internal control and auditing on government institution performance, using Iraq's Housing Fund as a case study. The study population comprised all Iraqi Housing Fund branches, with a sample of 114 respondents from financial managers, accounting heads, internal audit managers, and accounting/audit staff. Findings confirmed that internal control and auditing significantly influence government institution performance, as exemplified by the Iraqi Housing Fund. Based on these results, the study recommends the Housing Fund maintain its commitment to internal control and auditing due to their performance-enhancing role. Additionally, it suggests enhancing auditors' professional competence through training to align with industry advancements.

Key trends and features of non-financial information audit on sustainable development as a promising form of management audit

Key trends and features of non-financial information audit on sustainable development as a promising form of management audit

Multi-attribute decision-making model based on Remote Sensing to enhance the environmental auditing of Sustainable Forest Management in the Brazilian Amazon forest

Multi-attribute decision-making model based on Remote Sensing to enhance the environmental auditing of Sustainable Forest Management in the Brazilian Amazon forest

Enhancing Zakat Management: The Role of Monitoring and Evaluation in the Amil Zakat Agency

AbstractCompliance with basic principles such as financial transparency and accountability is needed to manage zakat. Transparency in reporting zakat management will increase Muzakki's trust so that Zakat's receipts will eventually grow. This article analyzes the monitoring and evaluation of zakat management at the amil zakat board of Palopo City. It focuses on financial, management, and quality audits (planning, collection, distribution, administration) and internal compliance audits. The study assesses the performance of these areas by using importance-performance analysis. The findings suggest prioritizing financial audits is crucial for building Muzakki's trust. Additionally, enforcing management audits, planning quality audits, finance, reporting, and internal compliance audits are essential for effective zakat management. Keywords:Evaluation, Importance Performance Analysis, Monitoring, Zakat Management

Disclosures in integrated reporting in Indonesia: Do corporate governance and ownership structures matter?

This study aims to analyze the impact of corporate governance and ownership structure on implementing elements of integrated reporting (IR) in the annual reports and sustainability reports of firms in Indonesia. This study includes corporate governance elements such as the size of the board of directors, the independence of the board of commissioners and the presence of audit and risk management committees. Meanwhile, the ownership structures examined in this study are institutional ownership and managerial ownership. The data were obtained through the content analysis of firms’ annual and sustainability reports. This research uses secondary data from the firms' websites and the Indonesia Stock Exchange (IDX) website. The data were then analyzed further using multiple regression analysis. The results show that only the risk management committee positively affects IR disclosure. At the same time, other independent variables do not affect IR disclosure. All control variables positively affect IR disclosure. This study adds to the literature by demonstrating that the risk management committee, firm size, profitability and leverage influence the extent of integrated reporting disclosure. This research contributes to corporations by illustrating that a risk management committee can enhance the importance of IR disclosure in Indonesia.

Audit Committee’s Roles & Effectiveness: Evidence from Indonesia

Financial statement manipulation that still occurring nowadays in Indonesia leads the following issue of how audit committee’s functioning within a corporation. This study questions whether audit committee has certain significant role as stated by OJK or just a formality to obey the regulation set by the government. Therefore, this research analyzes the audit committees’ effectiveness in Indonesia by using POJK No. 55/POJK.04/2015 as the basis of measurement. To examine the audit committee’s effectiveness, this research gathers primary data by distributing a questionnaire to audit committee’s in listed companies in Indonesia and to Ikatan Komite Audit Indonesia (IKAI). Based on the responses, the data is then analyzed by using the SEM-PLS approach. It is found that audit committee diligence in audit and decision-making areas significantly increases the audit committee activity. Moreover, audit committee activity and responsibility in internal audit, regulatory compliance, and risk management significantly influence the audit committee’s effectiveness.

An examination of Pacific nations’ legislatures’ interactions with Supreme Audit Institutions and the impact on audit quality

Purpose The purpose of this paper is to report a study of public accountability within the political and economic structures that characterise Pacific nations. The authors examine audit quality with respect to Pacific Island nations’ governmental reporting to investigate ways to improve accountability in a region that is economically and environmentally challenged. Design/methodology/approach The authors examine whether audit quality in Pacific Island nations is associated with the practical arrangements of Supreme Audit Institutions (SAIs), taking into account external factors. The “practical arrangements” include the independence of a SAI (regarding its staffing and funding) and also the requirement for it to report to the Executive. The financial setting in each jurisdiction has been seen to impact the quality of financial reporting and auditing. The authors examine mediating factors such as income, political stability and education that may also impact audit quality. This study uses publicly available databases as well as jurisdictional annual reports and the associated audit opinions and management letters (where available). Jurisdictional reports on public financial management were also analysed. Findings The authors find that public sector audit quality is low in many Pacific countries, concluding that public accountability is impaired. While the authors recommend changes to the practical arrangements that can improve audit quality, the mediating factors also impact audit quality. They argue that a renewed focus on financial capability could enhance public accountability in these nations, but there are limiting factors that are difficult to overcome. Practical implications There are problems in providing accountability for public sector activities in Pacific nations. The authors suggest that improvements to the appointment and funding of SAIs to enhance their independence will help to reduce these issues. Originality/value The authors present a framework for analysing SAIs’ practical arrangements and audit quality that includes variables that may mediate the effects of these practical arrangements. They apply the model to 20 Pacific jurisdictions, showing that the practical arrangements of a SAI directly impact audit quality. Nevertheless, there are instances where audit quality is poor despite good practical arrangements, implying that mediating factors also play a substantial role in determining audit quality of a SAI.

Natural resource assets management and urban carbon emission efficiency: Evidence from quasi-natural experiment in China

Efficient management of natural resources plays an important role in improving urban low-carbon development. Based on panel data from 277 prefecture-level cities in China, this paper investigates the impact of the “Natural Resource Assets Management Audit” (NRAMA) policy on urban carbon emission efficiency (CEE) using the staggered DID approach. Our findings reveal that the NRAMA policy significantly improves urban CEE and shows heterogeneity from the perspective of regional features, city size, resource dependency, government intervention, and marketization level. The mechanism test results suggest that the pilot policy affects urban CEE through efficient natural resource utilization, better environmental protection, government audit, fiscal expenditures, and urban green innovation. Additionally, population density plays a significant moderating role. Our study supplements new evidence on the relationship between natural resource assets management and efficient carbon emission reduction and provides key insights regarding the effective implementation of the NRAMA policy.

Pulmonary Embolism Management Audit and Machine Learning Analysis of Delayed Anticoagulation in a Swiss Teaching Hospital.

Background/Objectives: Diagnosing acute pulmonary embolism (PE) is challenging due to its wide range of symptoms and numerous differential diagnoses. Medical professionals must balance performing all essential examinations and avoiding unnecessary testing. This study aimed to retrospectively audit the diagnosis and treatment of acute PE at a Swiss public teaching hospital to determine the adherence to current guidelines and to identify the factors associated with the delayed initiation of anticoagulation in PE patients. Methods: In this retrospective observational cohort study, we included all adult patients hospitalized with PE at the Cantonal Hospital Baselland (KSBL) between November 2018 and October 2020, where the diagnosis was made within the first twelve hours of their arrival to the emergency department (ED). LASSO regression was employed to identify clinical characteristics associated with delayed anticoagulation initiation. Results: A total of 197 patients were included (mean age: 70 years, 54% female). The audit revealed that diagnostic workup was conducted according to guidelines in 57% of cases. Often, D-dimer levels were measured although not strictly necessary (70%). Pretest probability was assessed and documented using the Wells or Geneva score in only 3% of patients, and risk assessment via the Pulmonary Embolism Severity Index (PESI) score was documented in 21% of patients. The median time from ED arrival to CT scan was 120 min (IQR 89.5-210.5), and the median time to anticoagulation initiation was 193 min (IQR 145-277). Factors identified by LASSO associated with delayed anticoagulation included prolonged time from ED arrival to CT scan, the presence of distended jugular veins on examination, ED arrival in the morning, and presenting symptoms of weakness or tiredness. Complementary leg ultrasound was performed in 57% of patients, with 38% of these cases lacking prior clinical examination for deep vein thrombosis. The duration of the anticoagulation treatment was not specified in the discharge report for 17% of patients. A medical follow-up after discharge was recommended in 75% of the patients. Conclusions: In conclusion, while the management of PE at the KSBL generally adheres to high standards, there are areas for improvement, particularly in the morning performance, the use of a pretest probability assessment, D-dimer measurement, risk assessment via the PESI score, the performance of complementary leg ultrasounds, clarification of the anticoagulation duration, and follow-up management.

Governance and Risk Management in Sharia Banks and Financial Performance

General Background: The financial performance of Sharia commercial banks is crucial for Indonesia's economic growth. Specific Background: This study explores the impact of Good Corporate Governance (GCG), Internal Audit, and Risk Management on the financial performance of Sharia banks, particularly after the enactment of Law No. 21 of 2008. Knowledge Gap: Existing literature shows mixed results regarding the effects of these governance factors, indicating a need for comprehensive analysis in the context of Sharia banking. Aims: The research aims to assess how GCG, Internal Audit, and Risk Management affect financial performance from 2018 to 2021. Results: Analysis of 44 Sharia banks reveals that while Internal Audit negatively affects performance, GCG and Risk Management have significant positive impacts. Novelty: This study introduces a thorough examination of Risk Management alongside GCG and Internal Audit, enhancing the understanding of their roles in Sharia banking. Implications: Findings highlight the importance of strengthening governance frameworks in Sharia banks to improve financial performance, providing insights for investors and policymakers. Highlights: Good Corporate Governance and Risk Management significantly enhance financial performance in Sharia banks. Internal Audit shows a negative impact on the financial performance, emphasizing the need for effective implementation. The study addresses a gap in literature by examining the interplay of GCG, Internal Audit, and Risk Management in the Sharia banking sector. Keywords: Good Corporate Governance, Internal Audit, Risk Management, Financial Performance, Sharia Banks

Evaluating the impact of risk management and risk-based internal audit on fraud detection in local governments

One of the leading indicators for improving fraud detection capability is the evaluation of the implementation of risk management and risk-based internal audit and information technology systems. This study aims to evaluate how risk management and risk-based internal audits influence fraud detection capabilities in local government when integrated with information technology systems. SPSS 26 was utilized for data analysis. The paper uses a quantitative approach, collecting primary data with questionnaires distributed among 200 auditors and 70 supervisors across four districts in West Java. A purposive sampling approach based on self-selection was used. The findings show that the ability to detect fraud is significantly and positively influenced by the implementation of a risk-based internal audit (sig 0.000 < 0.05) and risk management process (sig 0.000 < 0.05). On the other hand, the risk management framework (sig 0.107 > 0.05) has a negative and insignificant effect on improving fraud detection capability. In addition, the relationships between the risk management process (sig 0.006 < 0.05) and fraud detection capability were found to be moderated by information technology systems. However, information technology systems are unable to moderate the relationship between risk-based internal audit (sig 0.563 > 0.05) and risk management framework (sig 0.115 > 0.05) on fraud detection capability. Therefore, risk management and risk-based internal audits are able to detect fraud, and information technology systems can strengthen the risk management process with the ability to detect fraud. AcknowledgmentThe authors would like to thank the University of North Sumatra, especially the Research Institute, for its support and the Ministry of Education and Research through the Directorate of Research, Technology, and Community Service program for providing intellectual assistance and funding for this project in the PMDSU grant (number: 91/UN5.4.10.S/PPM/KP-DRTPM/2024).

Design and Analysis of Information Security Risk Management Based on ISO 27005: Case Study on Audit Management System (AMS) XYZ Internal Audit Department

Design and Analysis of Information Security Risk Management Based on ISO 27005: Case Study on Audit Management System (AMS) XYZ Internal Audit Department

The Influence of Sustainable Risk Management on the Implementation of Risk-Based Internal Auditing

Risk management exerts a significant influence on the competitiveness of an organization and its operational processes. It presents opportunities for expansion, foresight, and the need to promote sustainability. Many organizations have executed comprehensive risk management processes. Moreover, internal audit has increasingly attracted managers’ attention, forming the basis of modern governance methods. The aim of this study is to examine, from the viewpoint of the agency, the impact of the role of internal auditors, training in risk management, and management support on risk management. Following this, the work examines risk management in terms of the risk-based auditing implementation that is performed by Saudi public organizations. This study encompassed 234 completed and therefore valid questionnaires from the manager and assistance of the internal audit department, internal auditors, accountants, and managers employed in Saudi public organizations. The data collected have been analyzed utilizing Smart Partial Least Squares (SmartPLS). This study’s findings confirmed that there is a significant association between the role of internal auditors in risk management, training in risk management, and between management support and risk management. There is also a significant association between risk management and the implementation of risk-based internal auditing. This study’s findings have significant ramifications for those in charge of public-sector organizations, and sustainability, aiming to enhance the dependability and trustworthiness of the internal audit process and other aspects of financial reports and audits in general. Currently, there is a dearth of published research on the factors that influence risk management and also on risk-based internal auditing. This study contributes to the emerging literature on this subject by examining Saudi public organizations; it also establishes empirical variables through a thorough review of relevant research. Conducted here is an empirical investigation that identifies the factors that affect risk management and then its influence on risk-based internal auditing implementation in the economic system of Saudi Arabia. By focusing on Saudi public organizations, this article highlights other countries that have similar systems of governance rules and procedures in their government-operated entities.

THE INFLUENCE OF AUDIT DELAY, SIZE OF PUBLIC ACCOUNTING FIRM, AUDIT OPINION, AND MANAGEMENT CHANGE ON AUDITOR SWITCHING

This study explores the impact of audit delay, the size of public accounting firms, audit opinions, and management changes on auditor switching among companies listed on the Indonesia Stock Exchange. The research aims to identify the key factors that influence a company's decision to switch auditors. Using logistic regression analysis and secondary data from financial reports, the study introduces a unique approach by simultaneously analyzing four independent variables, which is rarely done in prior studies. The results reveal that audit delay and management changes significantly affect auditor switching, while the size of public accounting firms and audit opinions do not have a significant impact. The findings suggest that operational and managerial factors play a more critical role in auditor switching decisions compared to financial factors. Theoretically, the study supports the relevance of agency theory in explaining auditor switching, particularly in addressing conflicts of interest between management and shareholders. Practically, these results provide valuable insights for company management when deciding to switch auditors and highlight the importance for regulators to implement policies that enhance transparency and audit quality, strengthening corporate governance practices in Indonesia.

Relaciones entre la auditoría de gestión y toma de decisiones. Enfoque teórico

Companies need to obtain effective results in the management of their activities and operations. They are in a continuous process of change and evolution, immersed in an interrelated environment that provides crucial information. In this context, it is essential that they exercise control and be selective when making decisions about strategies to implement. The management audit is presented as a key administrative tool to support business decision-making, which highlights the need to have information that facilitates and enriches these investigations. Under this premise, it was proposed to analyze the theoretical foundations of management auditing and managerial decision making from the perspectives of the relevant theories. This analysis is crucial to understand and adequately represent the theoretical relationships between its convergent categories. The research focused on management auditing as a strategic tool for decision-making in small and medium-sized enterprises (SMEs) in the Ecuadorian banana sector. The study was developed with a qualitative approach and descriptive nature, using a logical documentary and historical method. To do this, it was supported by sources such as scientific journals and other studies related to the topic. The content and structure of the study reflect the dynamics of the various theoretical relationships found. In conclusion, an evident evolution of this discipline over time in organizational structures has been demonstrated. Theoretical relationships provide frameworks for evaluating and improving management and decision-making, but their applicability and effectiveness in a specific sector may vary. Furthermore, the derivations obtained can serve as a reference and contribute to scientific knowledge for future researchers interested in delving deeper into the topic.

Towards Better Financial Governance: The Urgency of Model Risk Management in Indonesia Viewed Through Maqashid Shariah

This study assesses the adequacy of Model Risk Management (MRM) frameworks within Indonesian Islamic banking by utilizing Maqashid Shariah principles as a tool to align these frameworks more closely with global standards, specifically focusing on safeguarding life (Hifzh Al-Nafs) and property (Hifzh Al-Mal). Through a comparative literature review, this research examines the structure and effectiveness of MRM practices in Indonesia, referencing regulations such as POJK 65/2016 and SEOJK 25-SEOJK.03-2023, against those in developed financial markets such as the USA, UK, Europe, Japan, and UAE, with an emphasis on governance, lifecycle management, and internal audit processes. The findings suggest that Indonesia’s current MRM frameworks are somewhat rudimentary when contrasted with international norms. Key areas identified for enhancement include expanding the scope, enhancing governance structures, refining model lifecycle management, and strengthening internal audits and oversight mechanisms. By employing Maqashid Shariah principles as an analytical tool, this paper proposes enhancements to MRM frameworks that can significantly improve the stability and compliance of Islamic banks in Indonesia, promoting greater global competitiveness and adherence to Shariah principles. This approach not only integrates traditional MRM approaches with Islamic ethical standards but also provides a tailored framework for regulatory enhancements that support a stable, compliant, and ethical Islamic banking environment.

Procurement Audit on Organizational Service Delivery in Uganda

The researcher was interested in investigating the impact of procurement audits on organizational service delivery in Uganda. The article revealed that the government must enhance its procurement audit procedures to facilitate the efficient use of resources by public bodies and to support democratic governments. This can be achieved by promoting accountability and transparency, which can enhance operations and decision-making. All work in government bodies must ensure that goods and services, including works, are based on value for money, with due regard to propriety and regularity. Value for money does not aim to achieve the lowest initial price, but rather to satisfy the demands of stakeholders. On this note, the study calls for the government to establish systems and procedures for quality assurance, especially for auditors. Government officials should document and adhere to the budget and timetable. Government officials should monitor progress towards these targets. The audit manager and audit committee management should take responsibility for completing procurement audits within budget and on time. The design of quality control procedures should guarantee that all audits adhere to relevant standards and policies without any deviation. Keywords: Audit, Government, Organizational service, Procurement, Service delivery

Current Situation and Development Countermeasures of Internal Audit in Colleges and Universities

With the continuous development and reform of the market economy, colleges and universities have gradually become independent educational and scientific research units based on the market. The number of colleges and universities is increasing gradually, which also leads to the fiercer competition among colleges and universities. In order to enhance the core competitiveness of colleges and universities, we need to do a good job in internal audit, but there are still drawbacks in the management stage. Based on the above reasons, this paper first expounds the current situation of internal audit in colleges and universities, explores the audit management plan in the process of its development, in order to provide some suggestions for the management of colleges and universities.