THE DETERMINANT OF THE EFFECTIVENESS OF RISK-BASED INTERNAL AUDIT

Abstract

The organization carries out internal audits to monitor the organization’s operations, control risks and impacts, and help the organization achieve its goals (Institute of Internal Auditors [IIA], 2019). The motivation for this research is to increase accountability and transparency in the management of workforce social security programs through effective internal audits. This research explores the interaction of independence, competence, management support, and risk management on the effectiveness of risk-based internal audit (RBIA). The research was conducted in the context of the Social Security Administrator for Employment (BPJS Ketenagakerjaan) in Central Java, Indonesia. The questionnaire is a primary data collection instrument and uses a purposive sampling technique. The analysis technique uses data quality tests, classical assumption tests, and multiple linear regression. Data analysis was carried out using SPSS version 22 software. The results of the data analysis found that RBIA was influenced by independence. Independence is the existence of communication and access to information in all divisions or departments of an organization, which is able to improve the internal audit function and make it more effective (Alwi & Yuyetta, 2020). The second result is that competence, risk management, and management support do not have a significant positive influence on the effectiveness of RBIA.