Strengthening the internal audit system

Oct 13, 2025 by ludoplayers7.com 32 views

The Effect of the Application of Risk-Based Internal Audit, Competency, and Independence of the Auditor on Cheating Detection: Case Study at PT Jasa Raharja

Introduction

Internal audit is a crucial aspect of risk management in organizations, particularly in the public sector such as PT Jasa Raharja. The application of risk-based internal audit, along with the competence and independence of auditors, plays a vital role in detecting fraud. This study aims to examine the effect of the application of risk-based internal audit, auditor competencies, and independence on the ability to detect fraud within the PT Jasa Raharja environment.

Background

PT Jasa Raharja is a public sector organization that provides various services to the community. As a public sector organization, PT Jasa Raharja is subject to strict regulations and guidelines to ensure transparency and accountability. Internal audit is one of the key components of risk management in PT Jasa Raharja, and its effectiveness is crucial in detecting fraud and ensuring the integrity of the organization.

Methodology

This study used a total sampling technique, which means that the entire population of 133 employees of PT Jasa Raharja who had worked in the internal supervision unit was used as a sample. Data were collected through a survey questionnaire and analyzed using Structural Equation Modeling (SEM) techniques with the help of Lisrel 8.80 software.

Risk-Based Internal Audit Effect Analysis

Risk-based internal audit focuses on risk identification and evaluation that can hinder the achievement of organizational goals. This approach not only helps in finding potential gaps that are misused but also allows auditors to provide appropriate recommendations in risk management. In the context of PT Jasa Raharja, the application of this model increases awareness among employees about the importance of supervision and transparency.

Auditor Competency

Auditor competence also plays an important role in the audit process. Auditors who have adequate skills and knowledge about audit procedures and in-depth understanding of risks will be more effective in detecting fraud. They are able to analyze data more critically and identify anomalies that can be an indication of cheating. Therefore, training and continuous development for auditors are very important to increase the effectiveness of audit functions.

Auditor Independence

The auditor's independence refers to their ability to act objectively without influence from any party. This independence is very vital in maintaining the integrity of the audit process. If the auditor feels depressed or has a conflict of interest, the audit results can be influenced, thereby reducing the effectiveness of the detection of fraud. Therefore, it is essential for PT Jasa Raharja to create an environment that supports auditors' independence, so that they can carry out their duties well without unnecessary intervention.

The Effect of Risk-Based Internal Audit on Cheating Detection

The results of this study showed that the application of risk-based internal audit has a positive influence on cheating detection. That is, the better the implementation of internal audit based on risk, the higher the possibility of fraud can be detected.

Conclusion

From the results of this study, it can be concluded that the application of risk-based internal audit, along with the competence and independence of auditors, has a significant effect on the detection of fraud at PT Jasa Raharja. To increase the effectiveness of internal audit, companies are advised to continue to develop auditor competencies through training and maintaining their independence in carrying out supervisory functions. Thus, PT Jasa Raharja can be more proactive in preventing and detecting potential fraud that can harm the organization.

Recommendations

Based on the findings of this study, the following recommendations are made:

Strengthening the internal audit system: PT Jasa Raharja should continue to develop and strengthen its internal audit system based on risk, competency, and independence.
Training and development for auditors: PT Jasa Raharja should provide regular training and development programs for auditors to enhance their skills and knowledge about audit procedures and risk management.
Maintaining auditor independence: PT Jasa Raharja should create an environment that supports auditors' independence, so that they can carry out their duties well without unnecessary intervention.
Regular monitoring and evaluation: PT Jasa Raharja should regularly monitor and evaluate the effectiveness of its internal audit system to ensure that it is aligned with the organization's risk management objectives.

Limitations of the Study

This study has several limitations, including:

Sample size: The sample size of this study was limited to 133 employees of PT Jasa Raharja who had worked in the internal supervision unit.
Data collection method: The data were collected through a survey questionnaire, which may have limitations in terms of response rate and data quality.
Generalizability: The findings of this study may not be generalizable to other organizations or industries.

Future Research Directions

Future research should focus on:

Extending the study to other organizations: Future research should extend this study to other organizations or industries to generalize the findings.
Using other data collection methods: Future research should use other data collection methods, such as interviews or focus groups, to collect more in-depth data.
Examining the impact of internal audit on organizational performance: Future research should examine the impact of internal audit on organizational performance, including financial performance, customer satisfaction, and employee engagement.
Frequently Asked Questions (FAQs) about the Effect of Risk-Based Internal Audit, Competency, and Independence of the Auditor on Cheating Detection

Q: What is risk-based internal audit?

A: Risk-based internal audit is an approach to internal audit that focuses on identifying and evaluating risks that can hinder the achievement of organizational goals. This approach helps in finding potential gaps that are misused and allows auditors to provide appropriate recommendations in risk management.

Q: What is the role of auditor competency in internal audit?

A: Auditor competency plays a crucial role in the audit process. Auditors who have adequate skills and knowledge about audit procedures and in-depth understanding of risks will be more effective in detecting fraud. They are able to analyze data more critically and identify anomalies that can be an indication of cheating.

Q: Why is auditor independence important in internal audit?

A: Auditor independence is essential in maintaining the integrity of the audit process. If the auditor feels depressed or has a conflict of interest, the audit results can be influenced, thereby reducing the effectiveness of the detection of fraud. Therefore, it is essential for organizations to create an environment that supports auditors' independence.

Q: What are the benefits of risk-based internal audit?

A: The benefits of risk-based internal audit include:

Improved risk management
Enhanced transparency and accountability
Increased awareness among employees about the importance of supervision and transparency
Better detection of fraud and other irregularities

Q: How can organizations improve the effectiveness of internal audit?

A: Organizations can improve the effectiveness of internal audit by:

Developing auditor competencies through training and continuous development
Maintaining auditor independence
Regularly monitoring and evaluating the effectiveness of the internal audit system
Providing regular feedback and coaching to auditors

Q: What are the limitations of this study?

A: The limitations of this study include:

Sample size: The sample size of this study was limited to 133 employees of PT Jasa Raharja who had worked in the internal supervision unit.
Data collection method: The data were collected through a survey questionnaire, which may have limitations in terms of response rate and data quality.
Generalizability: The findings of this study may not be generalizable to other organizations or industries.

Q: What are the future research directions?

A: Future research should focus on:

Extending the study to other organizations or industries to generalize the findings
Using other data collection methods, such as interviews or focus groups, to collect more in-depth data
Examining the impact of internal audit on organizational performance, including financial performance, customer satisfaction, and employee engagement.

Q: What are the implications of this study for organizations?

A: The implications of this study for organizations are:

Organizations should continue to develop and strengthen their internal audit systems based on risk, competency, and independence.
Organizations should provide regular training and development programs for auditors to enhance their skills and knowledge about audit procedures and risk management.
Organizations should create an environment that supports auditors' independence.
Organizations should regularly monitor and evaluate the effectiveness of their internal audit systems to ensure that they are aligned with the organization's risk management objectives.

Q: What are the recommendations for future research?

A: The recommendations for future research are:

Future research should focus on extending the study to other organizations or industries to generalize the findings.
Future research should use other data collection methods, such as interviews or focus groups, to collect more in-depth data.
Future research should examine the impact of internal audit on organizational performance, including financial performance, customer satisfaction, and employee engagement.