Economics and Business
ISSN 2775-9237 (Online)
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
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Keywords: Risk-Based Audit, Planning, Risk, Audit Quality, Inspectorate of Surakarta
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.
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