Internal Audit Function and Application of Good Corporate Governance at Public Indonesian Commercial Banks

R.A. Novatiani , N.N. Afiah , R. Soemantri , H. Ritchi
European Research Studies Journal, Volume XXI, Special Issue 3, 381-388, 2018
DOI: 10.35808/ersj/1389

Abstract:

This study aims to analyze the internal audit function, analyze the application of good corporate governance and analyze the influence of the internal audit function on the implementation of good corporate governance. Deviations that occur in a company can be prevented by the implementation of good corporate governance adequately, and to achieve the application of good corporate governance, a quality internal audit is needed. The method used in this research is descriptive verification method. The sample of this study was 60 respondents, consisting of leaders and audit teams from three government commercial banks. The sampling technique is Nonprobability sampling, namely census sampling by collecting data using questionnaires and interviews. The results showed that the internal audit function was carried out adequately, the implementation of good corporate governance was carried out adequately and the internal audit function had an effect on the implementation of good corporate governance. To maximize the internal audit function in a government commercial bank (SOE’s Bank), internal auditors must be able to provide property protection to the company, and to achieve the principles of good corporate governance in accordance with what has been outlined, employee competency is needed in accordance with the internal.


Cite Article (APA Style)