SELF-ASSESSMENT IMPLEMENTATION TO IMPROVE THE MATURITY LEVEL OF INTERNAL AUDIT ACTIVITY USING INTERNAL AUDIT CAPABILITY MODEL: A CASE STUDY AT PT BADAK NGL

• Main Author: Nugroho
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/46781
• Institution: Institut Teknologi Bandung

In accordance with the definition of internal auditing issued by the Institute of Internal Auditors (IIA), the existence of the internal audit function is expected to provide added value and increase the effectiveness and efficiency of the company's activities. One indicator that the internal audit function has added value is the recommendations issued by the internal audit function have an impact on increasing the effectiveness and efficiency of the company's operations. Based on the analysis of the 2015-2017 audit report, it is shown that from the total 156 findings, 129 findings are compliance findings (only comparing conditions with existing criteria) and only 27 findings are improvement findings. The number of findings and recommendations for improvement that are less than the number of findings of compliance shows that the internal audit function has not optimally added value to management, especially in the context of improving performance and achieving company goals in terms of efficiency, effectiveness, productivity, and management of costs. To be able to provide added value to the company, the internal audit function must have the quality required by IIA, both the quality of the auditor, the quality of the internal audit institution and the quality of the internal audit activities. To dig deeper into the causes of these conditions and provide a solution, in this thesis the authors conducted self-assessment of internal audit activities using the internal audit professional standards no. 1300 concerning the Quality Assurance and Improvement Program (QAIP). QAIP contains quality requirements that must be possessed by the internal audit function including auditors and internal audit activities. This assessment was also carried out to identify the current level of maturity of the internal audit function and determine what steps should be taken to increase the level of maturity. The level of maturity reflects the quality of the internal audit function. The higher level of maturity reflects that the internal audit function provides more added value to the organization and audit failure is unlikely to occur. Based on the results of self-assessment in 2018, it can be concluded that the internal audit function at PT Badak NGL has reached the level of "Partially Conform" or Partially Fulfilled. Based on the results of the self-assessment, the level of maturity of the internal audit function is at level 2: infrastructure. The results of the self-assessment are expected to be an improvement for the internal audit function on in the future so that it can carry out its functions better.