THE EFFECT OF QUALITY OF INTERNAL AUDIT AND EFFECTIVENESS OF INTERNAL CONTROL SYSTEMS ON GOOD CORPORATE GOVERNANCE IN FINANCE COMPANIES
Abstract
The purpose of this research is to analyze the effect of quality of internal audit and the effectiveness of internal control system to corporate governance in finance companies. Quality of internal audit was measured by performance, competency and objectivity. The effectiveness of internal control system was measured by control environment, risk assessment, control activities, information and communication and monitoring. The last variable is good corporate governance was measured by corporate governance framework, protection of shareholders, role of stakeholders, transparency of information and roles and responsibilities of the board of commissioners and board of directors. There were 30 finance companies that become a sample in this research. This study used multiple linear regression as the method of analysis. The result of this research indicated that (1) The quality of internal audit has a positive effect on good corporate governance variable and (2) The effectiveness of internal control system has a positive effect on good corporate governance variable. The result of this research gives implication for internal parties must maintain and improve the existence of the quality of internal audit and the effectiveness of internal control system to achieve a more optimal GCG implementation in company operations. The second implication is for government is expected to be more active in monitoring the activities of finance companies, especially in terms of corporate governance.
References
AICPA, 1991. Professional Standards, Volume II. Commerce Clearing Hause. Inc, Chicago.
Al-Zwyalif, Inaam, M. 2015. The Role of Internal Control in Enhancing Corporate Governance: Evidence from Jordan. International Journal of Business and Management. Volume 10. No. 7. ISSN 1833-3850.
Arens, Alvin A. Randal J. Elder and Mark S. Beasley. 2014. Auditing dan Jasa Assurance (terjemahan). 15th Edition. Jakarta: Erlangga.
Arens, Alvin A., and Loebbecke, James K. 2000. Auditing An Integrated Approach. Eighth, Jilid 1, Prentice – Hall Internationa. Inc, New York.
Aulawi. 2010. Analisis Yuridis Beberapa Permasalahan Perusahaan Pembiayaan. Legalitas.Org. Accessed on 26 April 2016 from http://www.legalitas.org/artikel/analisis/ yuridis/beberapa/permasalahan/perusahaan/pembiayaan.
Ayu, Putri Puspita. 2014. Pengaruh Sistem Pengendalian Internal dan Audit Internal terhadap Pelaksanaan Good Corporate Governance (Penelitian pada BUMN dan BUMD se-Kota Bandung). Jurnal Unswagati.
Bailey, Andrew D., Jr. Gramling, Andrew A., and Ramamoorti, Sridhar. 2003. Research Opportunities In Internal Auditing. 74-96. The Instiute of Internal Auditor Research Foundation. Florida.
Barnea, A., Haugen, R. A., and Senbet, L. W. 1981. Market Imperfections, Agency Problems, and Capital Structure: A Review. Financial Management. 10(3), 7-22.
Bastian, Indra. 2011. Sistem Akuntansi Sektor Publik. Penerbit salemba empat. Jakarta.
Boynton, William C. Johnson., Raymond N. and Kell, Walter G. 2001. Modern Auditing. 7th Edition, Jilid 2. Erlangga. Jakarta.
Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2013. Internal Control – Integrated Framework.
Dallas, G. 2004. Governance and Risk: Analytical Handbooks for Investors, Managers, Directors and Stakeholders. McGraw-Hill. New York.
EY. 2014. Transitioning to the 2013 COSO Framework for External Financial Reporting Purposes.
Fadzil, F.H., Haron, H. & Jantan, M. 2005. Internal auditing practices and internal control system. Managerial Auditing Journal. Vol. 20, No. 8.
FCGI. 2001. Peranan Dewan Komisaris dan Komite Audit dalam Pelaksanaan Corporate Governance (Tata Kelola Perusahaan). 2th Edition.
Ghozali, Imam. 2006. Aplikasi Analisis Multivariate dengan Program SPSS. Cetakan keempat. Semarang: Universitas Diponegoro.
Gujarati, N. Damodar. 2009. Basic Econometrics fourth edition. McGraw-Hill
Gusnardi. 2011. Pengaruh Peran Pengendalian Internal, Audit Internal, Komite Audit, dan Pelaksanaan Good Corporate Governance Terhadap Pencegahan Fraud. Jurnal Ekuitas. Vol 15 No. 1. March 2011.
Haron, Ismail et al. 2006. Service Quality, Client Satisfaction and Loyalty Toward Audit Firm: Perseption of Malaysian Public Listed Company. Managerial Auditing Journal. Vol.21, No.7, pp 738-756.
Indonesian Institute for Corporate Governance (IICG). 2010. Good Corporate Governance Sebagai Budaya. Jakarta.
Indriyani, H. and Muhammadinah. 2010. Pengaruh Kualitas Audit Internal Terhadap Pelaksanaan Good Corporate Governance Pada PT. Pertamina. Journal of Unpad.
Jensen, M.C. and Meckling, W.H. 1976. Theory of the Firm: Managerial Behavior, Agency Cost and Ownership Structure. Journal of Financial Economics 3 (4): 305-360.
Keputusan Menteri Keuangan No. 1169 tahun 1991 tentang Kegiatan Sewa Guna Usaha.
Keputusan Presiden No. 61 Tahun 1988 tentang Lembaga Pembiayaan.
Mulyadi, 2002. Auditing. 6th Edition. Salemba Empat. Jakarta.
Mulyadi. 2014. Sistem Akuntansi. Yogyakarta: Salemba Empat
Nugroho, Dhimas Puguh 2012. Pelaksanaan Audit Internal Dalam Mewujudkan Good Corporate Governance Pada Sektor Publik. Journal of Unesa.
Odoyo, S. Fredrick and A., Omwono Gedion. 2014. The Role of Internal Audit in Enhancing Corporate Governance for Companies Listed at the Nairobi Stock Exchange. Research Journal of Finance and Accounting. Vol.5, No.3, 2014.
OJK, 2014. Buku Statistik 2013 dan Direktori 2014 Lembaga Pembiayaan.
OJK, 2014. Road Map tata kelola perusahaan Indonesia.
Organization for Economic Cooperation and Development. (2004). OECD Principles of Corporate Governance 2004. The OECD Paris.
Peraturan Menteri Energi Sumber Daya Mineral Nomor 7 Tahun 2012 Tentang Peningkatan Nilai Tambah Mineral Melalui Kegiatan Pengolahan Dan Pemurnian Mineral.
Peraturan nomor 30/pojk.05/2014 tentang tata kelola perusahaan yang baik untuk pembiayaan perusahaan.
Public Company America Oversight Board (PCAOB). 2007. Observations of Auditors Implementation of PCAOB. Standards Relating to Auditors Responsibility with Respect to Fraud. Release No. 2007-0. January 22. Washington D.C. PCAOB.
Santiso, Carlos. (2001). Good Governance and Aid Effectiveness: The World Bank and Conditionality. The Georgetown Public Policy Review. Vol. 7, No. 1 fall 2001. pp. 1 – 22.
Sari, Maylia Pramono and Raharja. 2012. Peran Audit Internal Dalam Upaya Mewujudkan Good Corporate Governance (GCG) Pada Badan Layanan Umum (BLU) di Indonesia. Simposium Akutansi XV Banjarmasin.
Saunders, M; Lewis, P; Thornhill, A (2012). Research Methods for Business Students. 6th edition.
Setiawan, Sakina Rakhma Diah. 2014. Kurang Modal, OJK Beri Sanksi 7 Perusahaan Pembiayaan. Accessed on 5 May 2017 from http://ekonomi.kompas.com/read/2014/01/28/1511424/Kurang.Modal.OJK.Beri.Sanksi.7.Perusahaan.Pembiayaan.
Surat Keputusan Menteri Keuangan No. 1251/KMK.013/1988 tentang Ketentuan dan Tata Cara Pelaksanaan Lembaga Pembiayaan.
Suyono, eko and hariyanto, eko. 2012. Relationship between internal control, internal audit, and organization commitment with good governance: Indonesian case. China-USA Business Review.
The Institute of Internal Auditor. 2011. The Professional Practices Framework. United Kingdom.
The Institute of Internal Auditors (IIA). 2003. Standard for the professional Practice Internal Auditing. The IIA Research Foundation. Florida.
The Institute of Internal Auditors (IIA). 2004. The Professional Practice Framework. The IIA
Umar, Husein. 2001. Metode Penelitian dan Aplikasi dalam Pemasaran. Jakarta: Gramedia Pustaka Umum.
World Bank Development Report. 2008. Washington DC. USA.
Yuwono, Candra. Wasito. Marisa, Siti. (2011). Pengaruh Peranan Auditor Internal Terhadap Penerapan GCG pada BUMN Jember. Jurnal of Jember University.
Zarkasyi, Moh. Wahyudin. 2008 Good Corporate Governance Pada Badan Usaha Manufaktur, Perbankan, dan Jasa Keuangan Lainnya. Bandung: Alfabeta.
Al-Zwyalif, Inaam, M. 2015. The Role of Internal Control in Enhancing Corporate Governance: Evidence from Jordan. International Journal of Business and Management. Volume 10. No. 7. ISSN 1833-3850.
Arens, Alvin A. Randal J. Elder and Mark S. Beasley. 2014. Auditing dan Jasa Assurance (terjemahan). 15th Edition. Jakarta: Erlangga.
Arens, Alvin A., and Loebbecke, James K. 2000. Auditing An Integrated Approach. Eighth, Jilid 1, Prentice – Hall Internationa. Inc, New York.
Aulawi. 2010. Analisis Yuridis Beberapa Permasalahan Perusahaan Pembiayaan. Legalitas.Org. Accessed on 26 April 2016 from http://www.legalitas.org/artikel/analisis/ yuridis/beberapa/permasalahan/perusahaan/pembiayaan.
Ayu, Putri Puspita. 2014. Pengaruh Sistem Pengendalian Internal dan Audit Internal terhadap Pelaksanaan Good Corporate Governance (Penelitian pada BUMN dan BUMD se-Kota Bandung). Jurnal Unswagati.
Bailey, Andrew D., Jr. Gramling, Andrew A., and Ramamoorti, Sridhar. 2003. Research Opportunities In Internal Auditing. 74-96. The Instiute of Internal Auditor Research Foundation. Florida.
Barnea, A., Haugen, R. A., and Senbet, L. W. 1981. Market Imperfections, Agency Problems, and Capital Structure: A Review. Financial Management. 10(3), 7-22.
Bastian, Indra. 2011. Sistem Akuntansi Sektor Publik. Penerbit salemba empat. Jakarta.
Boynton, William C. Johnson., Raymond N. and Kell, Walter G. 2001. Modern Auditing. 7th Edition, Jilid 2. Erlangga. Jakarta.
Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2013. Internal Control – Integrated Framework.
Dallas, G. 2004. Governance and Risk: Analytical Handbooks for Investors, Managers, Directors and Stakeholders. McGraw-Hill. New York.
EY. 2014. Transitioning to the 2013 COSO Framework for External Financial Reporting Purposes.
Fadzil, F.H., Haron, H. & Jantan, M. 2005. Internal auditing practices and internal control system. Managerial Auditing Journal. Vol. 20, No. 8.
FCGI. 2001. Peranan Dewan Komisaris dan Komite Audit dalam Pelaksanaan Corporate Governance (Tata Kelola Perusahaan). 2th Edition.
Ghozali, Imam. 2006. Aplikasi Analisis Multivariate dengan Program SPSS. Cetakan keempat. Semarang: Universitas Diponegoro.
Gujarati, N. Damodar. 2009. Basic Econometrics fourth edition. McGraw-Hill
Gusnardi. 2011. Pengaruh Peran Pengendalian Internal, Audit Internal, Komite Audit, dan Pelaksanaan Good Corporate Governance Terhadap Pencegahan Fraud. Jurnal Ekuitas. Vol 15 No. 1. March 2011.
Haron, Ismail et al. 2006. Service Quality, Client Satisfaction and Loyalty Toward Audit Firm: Perseption of Malaysian Public Listed Company. Managerial Auditing Journal. Vol.21, No.7, pp 738-756.
Indonesian Institute for Corporate Governance (IICG). 2010. Good Corporate Governance Sebagai Budaya. Jakarta.
Indriyani, H. and Muhammadinah. 2010. Pengaruh Kualitas Audit Internal Terhadap Pelaksanaan Good Corporate Governance Pada PT. Pertamina. Journal of Unpad.
Jensen, M.C. and Meckling, W.H. 1976. Theory of the Firm: Managerial Behavior, Agency Cost and Ownership Structure. Journal of Financial Economics 3 (4): 305-360.
Keputusan Menteri Keuangan No. 1169 tahun 1991 tentang Kegiatan Sewa Guna Usaha.
Keputusan Presiden No. 61 Tahun 1988 tentang Lembaga Pembiayaan.
Mulyadi, 2002. Auditing. 6th Edition. Salemba Empat. Jakarta.
Mulyadi. 2014. Sistem Akuntansi. Yogyakarta: Salemba Empat
Nugroho, Dhimas Puguh 2012. Pelaksanaan Audit Internal Dalam Mewujudkan Good Corporate Governance Pada Sektor Publik. Journal of Unesa.
Odoyo, S. Fredrick and A., Omwono Gedion. 2014. The Role of Internal Audit in Enhancing Corporate Governance for Companies Listed at the Nairobi Stock Exchange. Research Journal of Finance and Accounting. Vol.5, No.3, 2014.
OJK, 2014. Buku Statistik 2013 dan Direktori 2014 Lembaga Pembiayaan.
OJK, 2014. Road Map tata kelola perusahaan Indonesia.
Organization for Economic Cooperation and Development. (2004). OECD Principles of Corporate Governance 2004. The OECD Paris.
Peraturan Menteri Energi Sumber Daya Mineral Nomor 7 Tahun 2012 Tentang Peningkatan Nilai Tambah Mineral Melalui Kegiatan Pengolahan Dan Pemurnian Mineral.
Peraturan nomor 30/pojk.05/2014 tentang tata kelola perusahaan yang baik untuk pembiayaan perusahaan.
Public Company America Oversight Board (PCAOB). 2007. Observations of Auditors Implementation of PCAOB. Standards Relating to Auditors Responsibility with Respect to Fraud. Release No. 2007-0. January 22. Washington D.C. PCAOB.
Santiso, Carlos. (2001). Good Governance and Aid Effectiveness: The World Bank and Conditionality. The Georgetown Public Policy Review. Vol. 7, No. 1 fall 2001. pp. 1 – 22.
Sari, Maylia Pramono and Raharja. 2012. Peran Audit Internal Dalam Upaya Mewujudkan Good Corporate Governance (GCG) Pada Badan Layanan Umum (BLU) di Indonesia. Simposium Akutansi XV Banjarmasin.
Saunders, M; Lewis, P; Thornhill, A (2012). Research Methods for Business Students. 6th edition.
Setiawan, Sakina Rakhma Diah. 2014. Kurang Modal, OJK Beri Sanksi 7 Perusahaan Pembiayaan. Accessed on 5 May 2017 from http://ekonomi.kompas.com/read/2014/01/28/1511424/Kurang.Modal.OJK.Beri.Sanksi.7.Perusahaan.Pembiayaan.
Surat Keputusan Menteri Keuangan No. 1251/KMK.013/1988 tentang Ketentuan dan Tata Cara Pelaksanaan Lembaga Pembiayaan.
Suyono, eko and hariyanto, eko. 2012. Relationship between internal control, internal audit, and organization commitment with good governance: Indonesian case. China-USA Business Review.
The Institute of Internal Auditor. 2011. The Professional Practices Framework. United Kingdom.
The Institute of Internal Auditors (IIA). 2003. Standard for the professional Practice Internal Auditing. The IIA Research Foundation. Florida.
The Institute of Internal Auditors (IIA). 2004. The Professional Practice Framework. The IIA
Umar, Husein. 2001. Metode Penelitian dan Aplikasi dalam Pemasaran. Jakarta: Gramedia Pustaka Umum.
World Bank Development Report. 2008. Washington DC. USA.
Yuwono, Candra. Wasito. Marisa, Siti. (2011). Pengaruh Peranan Auditor Internal Terhadap Penerapan GCG pada BUMN Jember. Jurnal of Jember University.
Zarkasyi, Moh. Wahyudin. 2008 Good Corporate Governance Pada Badan Usaha Manufaktur, Perbankan, dan Jasa Keuangan Lainnya. Bandung: Alfabeta.
Published
2020-08-14
How to Cite
MANGASIH, Edwin Theo; PINASTI, Margani; BAWONO, Icuk Rangga.
THE EFFECT OF QUALITY OF INTERNAL AUDIT AND EFFECTIVENESS OF INTERNAL CONTROL SYSTEMS ON GOOD CORPORATE GOVERNANCE IN FINANCE COMPANIES.
SAR (Soedirman Accounting Review) : Journal of Accounting and Business, [S.l.], v. 5, n. 1, p. 56-82, aug. 2020.
ISSN 2598-0718.
Available at: <https://jos.unsoed.ac.id/index.php/sar/article/view/2723>. Date accessed: 09 may 2025.
doi: https://doi.org/10.20884/1.sar.2020.5.1.2723.
Section
Articles
.jpg)
