Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 19 September 2022

Analysis of Risk-Based Internal Audit Planning Implementation and Its Impact on Audit Quality: Case Study at the Inspectorate of Surakarta, Indonesia

Erika Pristiwati Anugraheni, Erma Setiawati, Rina Trisnawati

Muhammadiyah Surakarta University

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.05.03.448

Pages: 202-217

Keywords: Risk-Based Audit, Planning, Risk, Audit Quality, Inspectorate of Surakarta

Abstract

This study aims to determine the implementation of risk-based audit planning in the Inspectorate of Surakarta and its impact on audit quality. In addition, this study also identifies factors that hinder the implementation of the risk-based audit plan. The approach used in this research is a qualitative approach with a case study method. This study concludes, firstly, that the risk-based audit planning at the Inspectorate of Surakarta consists of the strategic planning stage, annual audit planning, and individual audit planning assignments. Second, the Inspectorate of Surakarta has encouraged the identification and risk assessment process for local government agencies through the preparation of a risk register, which has been well documented. But the Local Government Agency is taking a long time to send the Inspectorate its risk register. Furthermore, the impact of risk-based audit planning at the Inspectorate of Surakarta on audit quality can be seen from the value of the results of the external peer review in 2022, with the category "Good." In addition, risk-based audit assignments are able to narrow the scope of audits on high-risk programs and activities and save audit time. Factors that hinder the Surakarta City Inspectorate in implementing risk-based audit planning in terms of annual planning include the inadequate quality of risk management in OPD, delays in compiling risk registers in the Local Government Agency, and changes in nomenclature.

References

  1. Indonesian Government Internal Auditor Association. (2021). Regulation Number: PER-01/AAIPI/DPN/2021 about Indonesian Government Internal Audit Standar.

  2. Anwar, Mokhamad. (2015). Contingency Theory and Its Implications to Corporate Financial Planning and Organization Structure. JAM : Jurnal Aplikasi Manajemen. Vol 13 no. 3.

  3. Ayagre. (2014). The Adoption of Risk Based Internal Auditing in Developing Countries: The Case of Ghanaian Companies,2, 52-65. Retrieved November 15, 2016.

  4. Castanheira, N., Lima Rodrigues, L., & Craig, R. (2009). Factors associated with the adoption of riskÊbased internal auditing. Managerial Auditing Journal, 25(1), 79-98. https://doi.org/10.1108/02686901011007315

  5. Chartered Institute of Internal Auditors. (2014). Risk Based Internal Auditing. https://www.iia.org.uk/resources/risk-management/risk-based-internal- auditing?downloadPdf=true

  6. Coetzee, H., & Fourie, P. (2009). Perceptions on the role of internal audit function in respect of risk. African Journal of Business Management African Journal of Business Management, 3(13).

  7. Coetzee, P dan Lubbe, D. (2013). Improving The Efficiency and Effectiveness of Risk-Based Internal Audit Engagements. International Journal of Auditing. John Wiley & Sons.

  8. Creswell, J.W. (2013). Research Design Qualitative, Quantitative, and Mixed Method Approach (4th ed.). Yogyakarta, Indonesia: Pustaka Pelajar.

  9. COSO ERM Integrated Framework. (2004). The Committee of Sponsoring Organizations of the Treadway Commission.

  10. Darmasto, G. (2015). Contribution to encourage an effective APIP Role. Retrieved from http://pusbinjfa.bpkp.go.id.

  11. Deputy for Supervision of Regional Financial Administration. (2018). Guidelines for the Concept of Risk-Based Internal Control Planning for Regional APIPs. Development Finance Supervisory Agency.https://apip.bpkp.go.id/pedoman/Pedoman/P08-Pedoman-Perencanaan-Pengawasan-Berbasis-Risiko.pdf

  12. Dewi, Gusti Ayu Ketut. (2017). The Influence of Individual Morality and Internal Control on Accounting Fraud (Experimental Study on Bali Provincial Government). Jurnal Ilmiah Akuntansi.

  13. Erlina, Putri, D. R., Sopanah, A., & Young, I. (2018). A Model of Successful Risk Based on Internal Audit Implementation in Regencies / Cities In North Sumatra. International Journal of Civil Engineering and Technology (IJCIET). Vol. 9 Issue 9. 615-627. https://www.researchgate.net/publication/336716101_Model_of_Successful_Risk_Based_Internal_Audit_Implementation_in_RegenciesCities_in_North_Sumatera

  14. Hariadi, Bayu Wicaksono. (2020). Analysis of Risk-Based Internal Audit Planning at the Main Inspectorate of the Central Bureau of Statistics. Accounting and Business Information System Journal. Vol 8 no. 1. https://journal.ugm.ac.id/abis/article/view/58883

  15. Hennink, M., Hutter, I., Bailey, A. (2011). Qualitative Research Methods. London: SAGE Publications, Ltd.

  16. Herawati, Tuti. (2014). The Effect of Internal Control System on the Quality of Financial Reports (Survey on Cianjur Regional Government Organizations). Study and Accounting Research.Vol. XI no. 1. DOI: https://doi.org/10.55916/jsar.v11i1.44

  17. KPMG. (2013). Taking the Pulse a Survey of Internal Audit in Singapore 2013.

  18. Messier, William F., Steven M. Glover, Douglas F. Prawitt. (2014). Audit Services and Assurance. 8th edition. Jakarta: Selemba Empat.

  19. Nugraheni, Nur Meilani Tri and Bambang Pamungkas. (2021). Analysis of RBA implementation and the preparation of an audit program at Ministry of Villages, Development of Disadvantaged Regions and Transmigration. Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara. Volume 7, Number 1, Jan-Jun 2021, 77-93. http://jurnal.bpk.go.id/index.php/TAKEN/article/view/489

  20. Pujiono, P., & Jati, I. (2007). The Effect of Public Sector Audit on the Development of Government Accounting in Indonesia. Jurnal Ilmiah Akuntansi dan Bisnis. Vol. 2 no. 2. https://ojs.unud.ac.id/index.php/jiab/article/view/2557

  21. Regulation of the Deputy for Supervision of Regional Financial Administration Number 4 of 2019 concerning Guidelines for Risk Management in Regional Governments.

  22. Surakarta Mayor Regulation number 29 of 2013 concerning Audit Standards for Government Internal Supervisory Apparatus at the Surakarta City Inspectorate.

  23. Surakarta Mayor Regulation Number 1.1 of 2021 concerning Planning for Guidance and Supervision of the Implementation of Surakarta City Government in 2021.

  24. Surakarta Mayor Regulation Number 5 of 2021 concerning Guidelines for Risk Management in the Surakarta City Government.

  25. Prakoso, Robby. (2020). Covid-19 : The New Normal Risk Based Internal Auditing.https://robbyprakoso.wordpress.com/2020/05/12/covid-19-the-new-normal-risk-based-internal-auditing/

  26. Prasasti, Dea. (2014). Performance Audit Planning With a Risk-Based Internal Auditing Approach at the Inspectorate General of the Ministry of Energy and Mineral Resources. Master’s Degree Thesis. Gadjah Mada University.

  27. Republic of Indonesia. (2007). Minister of Home Affairs Regulation Number 23 of 2007 concerning Guidelines for Supervision of Regional Government Administration.

  28. Republic of Indonesia. (2008). Regulation of the Minister of State for the Utilization of State Apparatus Number PER/05/M.PAN/03/2008 about Audit Standar Government Internal Supervisory Apparatus.

  29. Republic of Indonesia. (2008). Government Regulation Number 60 of 2008 concerning Government Internal Control System.

  30. Republic of Indonesia. (2009). Regulation of the State Minister for the Empowerment of State Apparatus and Bureaucratic Reform 19 of 2009 concerning Guidelines for Quality Control of Government Internal Supervisory Apparatus.

  31. Republic of Indonesia. (2016). Minister of Finance Regulation number 12/PMK.09/2016 concerning Implementation of Risk Management in the Ministry of Finance.

  32. Republic of Indonesia. (2020). Minister of Home Affairs Regulation Number 23 of 2020 concerning Planning for Guidance and Supervision of the Implementation of Regional Government in 2021.

  33. Rahmawati, Lis. D. 2015. Analysis of Changes in PKPT Preparation at the DIY Inspectorate. Master’s Degree Thesis. Gadjah Mada University.

  34. Sari, R.N., Ainuddin, R.A. and Tengku Abdullah, T.A. (2006). The impression of a match between strategic management accounting and trading strategy on firm performance. Jurnal Pengurusan, 25, 87-109. http://journalarticle.ukm.my/8071/1/874-1659-1-SM.pdf

  35. Scokzylas, A. & Nowak, W.A. (2012). The Era of Internal audit in the Public Finance Sector in Poland. Journal of US-China Public Administration, 9(1), 8-25

  36. Setiawan, Hajar. (2014). The Effect of Auditor Competence and Independence on Audit Quality with the Application of Risk-Based Auditing as a Moderating Variable (Case Study at the Inspectorate of West Kalimantan Province). MAKSI UNTAN. Vol. 4 no. 1 https://jurnal.untan.ac.id/index.php/maksi/article/view/28316

  37. Susanto, Slamet. (2020). The Role of Government Internal Supervisory Apparatus in Optimizing Risk Management Implementation. Jurnal Pengawasan, Vol. 2 (2). https://www.bpkp.go.id/public/upload/unit/puslitbangwas/files/Jurnal%20Pengawasan%20Vol.%202%20No.%202%20September%202020.pdf

  38. Sugiyono. (2009). Quantitative and Qualitative Research Methods. Bandung, Indonesia: CV.Alfabeta.

  39. Suwanda, Dadang, Burdan Ali Junjunan, Ellen Rusliati. (2019). Risk Management: Regional Financial Management as an Effort to Increase Public Transparency and Accountability. Rosda Bandung.

  40. The Institute of Internal Auditors Inc. (1998). Standards for the Professional Practice of Internal Auditing. Institute of Internal Auditors, Altamonte Springs, Florida.

  41. Tuanakotta, T. M. (2013). ISA (International Standards on Auditing) Based Audit. First Edition. Salemba Empat. Jakarta.

  42. Tunggal, Amin Widjaja. (2007). Management Audit. Jakarta : Rineka Cipta.

  43. Yin, Robert K. (2015). Case Study: Design and Method. Jakarta: Rajawali Pers.

  44. Zacchea, Nicholas M. (2003). Risk-Based Audit Target Selection Can Increase The Probability of Conducting Value-Added Audits. The Government Accountants Journal: Financial Management in the Public Sector. Vol. 52.2003, 1, p. 22–38.

  45. Zamzami, Faiz. Ihda Arifin Faiz. Mukhlis. (2018). Internal Audit Concepts and Practices. Gadjah Mada University Press.

  46. Zeithaml, Valarie, A.P. ”Rajan” Varadarajan, Carl P. Zeithaml. (1988). The Contingency Approach: Its Foundations and Relevance to Theory Building and Research in Marketing. European Journal of Marketing, Vol. 22 Iss: 7.