COLLECTIVE LEARNING IN THE ADOPTION OF RISK BASED INTERNAL AUDIT (RBIA) AS A METHOD OF INTERNAL CONTROL (Case Study: Inspectorate General Ministry of Public Works)

• Main Author: YUSMIATI DAHLIA, LASNITA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22869
• Institution: Institut Teknologi Bandung

Governance to realize the state objectives create rights and obligations that need to be managed in a system of state financial management. Public sector organizations have trust and confidence of the public to use public resources. Therefore, public sector organizations are required to manage resources in a more accountable and transparent. To improve accountability and transparency in the management of the resources required to audit the public sector. <br /> <br /> Given the state financial sector reform, public sector auditing in Indonesia known as the audit of state finances. Inspectorate General (IG) as the institution of internal control in the Ministry of Public Works is functionally to supervise all activities in furtherance of the duties and functions of the ministry. Supervisory activities in connection with quality assurance, the bureaucratic reform document the Ministry of Public Works, stated that one of the activities in strengthening the surveillance program is increasing the role of IG as a quality assurer and consultant. The 'new' role as a quality assurer and consultant in the Ministry of Public Works, encourages IG such adjustments control pattern. One adjustment is done is through the adoption of risk based internal audit (RBIA) as a method of internal control. Adoption of RBIA in shades of bureaucratic reform is likely to produce something that is not compatible. Emphasis RBIA methods and bureaucratic reform are two different things. Focus RBIA method is the business processes of an organization while bureaucratic reform emphasis on the increasing management of state finances. This will cause a polemic in the internal control activities at IG Ministry of Public Works that could have implications on the lack of actors audit’s support in the adoption of RBIA method. As a method adopted from the private, RBIA method requires adjustments to be applied at the level of government. Adjustments are made full of learning. <br /> <br /> This study aims to determine how the collective learning process conducted IG in the Ministry of Public Works adopted RBIA as a method of internal control so as to perform the role as a quality assurer and consultant. In understanding the phenomenon that became the focus of research, exploratory qualitative approach is used to produce a thorough understanding of the learning process that occurs in the implementation RBIA at IG Ministry of Public Works. With the ANT approach, do a search and recording traces of the activity of actors involved in the implementation RBIA. <br /> <br /> Initiative RBIA method selection as a method of audit, is not purely from the leader of IG Ministry of Public Works, but there is the influence of various internal and external interests of the Ministry of Public Works. Intervention from parties outside the IG has created something that is not compatible with what is to be achieved by implementation RBIA. IG Ministry of Public Works wanted the auditors as the actors perform the role of audit as a quality assurer and consultant who focuses on understanding business processes auditee, not only the financial statements. While outside parties wanted the IG provide guidance to improve financial reporting the Ministry of Public Works. Weaknesses of financial reporting is a parameter in assessing the low performance of Ministry of Public Works. <br /> <br /> In general, adaptation in implementation RBIA at IG has stimulated the organizational learning in enhancing the capacity and capability as a quality assurer and consultant. For example, changes in governance oversight activities such as training needs analysis and preparation of the audit team composition. The higher the competence of the audit team expected to contribute better to the improvement of the performance of the auditee. <br />