Influencing Factors Analysis on Quality of Internal Audit Results (Case Study at Inspectorate General of Ministry of Marine Affairs and Fisheries)

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Arif Satriyo Nugroho
Pudji Muljono
Heti Mulyati

Abstract

This research aims to analyse the influence of peer review, integrity, objectivity, competence, and independence on internal audit result quality, both partially and simultaneously as well as to examine audit time as its moderating variable. Furthermore, this research also proposes better internal audit quality system at Inspectorate General of Ministry of Marine Affairs and Fisheries. As many as 86 auditors are involved as research population and observed methodically. Primary data required for this study are collected through questionnaires and analysed using Likert Scale. Secondary data are assembled from the Inspectorate General's organisational structure, Institution's annual report and Government Accountability Report (LAKIP). Structural Equation Modelling (SEM) Partial Least Square (PLS) and Statistical Package for the Social Sciences (SPSS) are used to process & analyse the data. This research indicates 1) Peer Review, competence, and independence are factors partially capable of influencing Internal Audit quality, 2) Peer review, integrity, objectivity, competence, and independence can simultaneously affect Internal Audit quality, both with or without Audit Time moderation, (3) Audit time doesn't serve as moderating variables for moderating partial influence of peer review, integrity, objectivity, and competence towards internal audit result quality, and (4) Relevant activities to enhance audit result quality are workshops, seminars and technical assistance on audit-related topics and could improve auditor's integrity, objectivity, competence, and independence.

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How to Cite
Nugroho, A. S., Muljono, P., & Mulyati, H. (2017). Influencing Factors Analysis on Quality of Internal Audit Results (Case Study at Inspectorate General of Ministry of Marine Affairs and Fisheries). The International Journal of Business & Management, 5(7). Retrieved from https://internationaljournalcorner.com/index.php/theijbm/article/view/124299