The Role Of Internal Auditing And Internal Control System On The Financial Performance Quality In Banking Sector
Resumen
The objective of the empirical study is to examine and analyze the influence of internal audit and internal control systems on the prevention of accounting fraud in banking sector. This study obtained data from primary data. The sample of this empirical study is an employee who works in the three largest banks in Indonesia and has working experience at least two years. This research uses multiple linear regression analysis as hypothesis testing. The results of the empirical study are (1) internal audit had a positive significant influence on the prevention of accounting fraud in banking sector, (2) internal control system had a positive significant influ- ence on the prevention of accounting fraud in banking sector.Citas
Adeyemi, S. B., Dabor, E. L., & Okpala, O. (2012). Factors affecting audit quality in Nigeria. International Journal of Business and Social Science, 3(20), 198-209.
Akhavan, P., Mehralian, G., Moghaddam, J. Y., & Ramezan, M. (2014). Exploring the relationship between ethics, knowledge creation and organ- izational performance: A Case study of a knowledge-based organization. The Journal of Information and Knowledge Management Systems, 44(1), 42-58. doi: 10.1108/VINE-02-2013-0009.
Arbabian, A., & Nasrabadi, (2015). The effects of professional ethics and commitment on audit quality. Management Science Letters, 5(11), 1023- 1028.
Ardelean, A. (2013). Auditors’ ethics and their impact on public trust. Social and Behavioral Sciences, 92(10), 55-60. doi: 10.1016/j.sb- spro.2013.08.637.
Asthana, S. C., Balsam, S., & Krishnan, J. (2010). Corporate governance, audit firm reputation, auditor switches, and client stock price reactions: The Andersen experience. International Journal of Auditing, 14(3), 274- 293. doi: 10.1111/j.1099-1123.2010.00417.x
Aulisio, M. P. & May, T. (2009). Personal morality and professional obli- gations: Rights of conscience and informed consent. Perspectives in Biol- ogy and Medicine, 52(1), 30-8. doi: 10.1353/pbm.0.0061.
Bakar, N. B., Rahman, A. A., & Rashid H. M. (2008). Factors influencing auditor independence: Malaysian loan officers’ perceptions. Managerial Auditing Journal, 20(8), 804-822. doi: 10.1108/02686900510619665 Bowlin, K. O., Hobson, J. L., & Piercey M. D. (2015). The effects of au- ditor rotation, professional skepticism, and interactions with managers on audit quality. The Accounting Review, 90(4), 1363-1393. doi: 10.2308/ accr-51032.
Crickett, M., Dunsmore, A., Ferguson, A. Gibson, C., & Telfer, A. (2016). A professional judgment framework for financial reporting decision mak- ing. Edinburgh, UK: Institute of Chartered Accountants of Scotland. Downie, R., & Macnaughton, J. (2013). In defense of professional judg- ment. Advances in psychiatric treatment. Journal of Continuing Profes- sional Development, 15(5), 322–327. doi: 10.1192/apt.bp.108.005926. Gana, M. R., & Krichen, R. L. (2013). Board characteristics and external audit quality: Complementary or substitute mechanisms?. International Journal of Management Sciences and Business Research, 2(3), 68-95. Glover, S. M., & Prawitt, D. F. (2014). Enhancing auditor professional skepticism: The professional skepticism continuum. Current Issues in Au- diting, 8(2), 1-10. doi: 10.2308/ciia-50895.
Hu, K. H., Low, K. Y, & Siriwardane, H. P. (2014). Skills, knowledge, and attitudes important for present‐day auditors. International Journal of Auditing, 18(3), 193-205. doi: 10.1111/ijau.12023.
International Auditing and Assurance Standards Board. (2014). A frame- work for audit quality: Key elements that create an environment for audit quality. Retrieved October, 10, 2018, from https://www.ifac.org/publica- tions-resources/framework-audit-quality-key-elements-create-environ- ment-audit-quality.
Ivan, I. (2016). The importance of professional judgment applied in the context of international financial reporting standards. Audit Financier, 14(10), 1127-1135. doi: 10.20869/AUDITF/2016/142/1127.
Jenkins, D. S., & Vermeer, T. E. (2013). Audit firm rotation and audit quality: Evidence from academic research. Accounting Research Journal, 26(1), 75-84. doi: 10.1108/ARJ-11-2012-0087.
Johnson, L. A., & Parker, S. (2017). The development of internal auditing as a profession in the U.S. during the twentieth century. Accounting His- torians Journal, 44(2), 47-67. doi: 10.2308/aahj-10549?code=aaan-site&- journalCode=aahj.
Lavrakas, P. J., & Roller, M. R., (2015.) Applied qualitative research de- sign: A total quality framework approach. New York, NA: The Guilford Press.
Lennox, C. S., Wu, X., & Zhang, T. (2014). Does mandatory rotation of audit partners improve audit quality?. The Accounting Review, 89(5), 1775-1803. doi: 10.2308/accr-50800.
Marshall, C., & Rossma, B. C. (2015). Designing qualitative research.Thousand Oaks, NY: SAGE Publications.
Maxwell, J. A. (2012). Qualitative research design: An interactive ap- proach. Thousand Oaks, CA: SAGE Publications.
Omri, M. A., & Akrimi, N. (2015). Factors affecting auditor independence in Tunisia: The perceptions of financial analysts. Journal of Finance and Accounting, 3(3), 42-49. doi: 10.11648/j.jfa.20150303.12.
Public Company Accounting Oversight Board. (2018). Protecting inves- tors through audit oversight. Retrieved October, 11, 2018, from https:// pcaobus.org// /.
Ruiz‐Barbadillo, E., Go ́mez‐Aguilar, N., & Carrera, N. (2009). Does mandatory audit firm rotation enhance auditor independence?: Evidence from Spain. Auditing: A Journal of Practice & Theory, 28(1), 113-135. doi: 10.2308/aud.2009.28.1.113.
Tabandeh, S. (2017). The relationship between auditor professional ethics and audit quality. Ethics in Science & Technology, 11(3), 77-86.
The Australian Security and Investment Commission. (2017). Improving and maintaining audit quality. Retrieved October, 10, 2018, from https:// asic.gov.au/regulatory-resources/financial-reporting-and-audit/auditors/ improving-and-maintaining-audit-quality/.
The Chartered Accountants Australia and New Zealand. (2018). Audit qual- ity: Achieving a high standard of audit quality builds trust and confidence in the audit profession. Retrieved October, 12, 2018, from https://www. charteredaccountantsanz.com/member-services/technical/audit-and-as- surance/audit-quality.
The Institute of Internal Auditors. (2017). Quality assurance. Retrieved October, 11, 2018, from https://na.theiia.org/services/quality/Pages/Qual- ity-Assurance.aspx.
Wedemeyer, P. D. (2010). A discussion of auditor judgment as for the crit- ical component in audit quality – A practitioner’s perspective. Internation- al Journal of Disclosure and Governance, 7(4), 320–333. doi: 10.1057/ jdg.2010.19.
Zhang, Y, Hay, D., & Holm, C. (2016). Non-audit services and auditor in- dependence: Norwegian evidence. Cogent Business & Management, 3(1), 33-56. doi: 10.1080/23311975.2016.121522.
