Citation:

Berandetta Diana Nugraheni, Cyrillius Martono. "Internal Auditor's Perception of Factors Affecting the Value Added the Internal Audit Function" International Research Journal of Economics and Management Studies, Vol. 2, No. 2, pp. 485-490, 2023.

Abstract:

This study intends to investigate the variables that influence how internal auditors themselves perceive the value added of the internal audit function. Because what is added value for internal auditors may not be suitable when seen from a stakeholder perspective, there is still room for improvement in our understanding of added value. A steward will prioritise the interests of the principle over his own by applying the fundamental tenets of stewardship, which centre on the connection between the principal and the steward. The internal audit function provides services that are needed by many stakeholders. To meet the expectations of stakeholders, internal auditors must be able to perform professionally in accordance with the requirements of the internal audit profession and the Professional Code of conduct. The motivation of this study is that there is still a lack of research that examines added value as a major factor in the purpose of internal audit to provide its services, so that the gap of understanding and conformity of expectations between internal auditors and stakeholders is getting narrower. The factors of management support, internal audit activities or services, and risk assessment are recognised to have a substantial impact on the added value of the internal audit function according to PLS-SEM. While staffing, work environment, and the implementation of recommendations have not been able to demonstrate their influence on the added value of the internal audit function, the organisational standing of the internal audit function has.

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Keywords:

Value Added, Internal Audit Function, Management Support, Internal Audit Services, Risk Assessment, Organization Status, Staffing And Work Environment, And Recommendation Implementation.