Seminar Akuntansi

Sabtu, 18 September 2021

 Factor affecting the internal auditors’ effectiveness in
Jordanian public sector
The moderating effect of task complexity

Hamza Mohammad Alqudah, Noor Afza Amran and Haslinda Hasan

(Departement of Accountancy, University Utara Malaysia, Sintok, Malaysia)

Euromed Journal of Business

Vol.14 No. 3, 2019
pp.251-273
Internal Auditors’ Effectiveness
 Back Ground
 Isu/Fenomena Penelitian
Internal auditors play a key role in helping organization achieve their objectives and safeguard
asset. Having an effective internal audit (IA) will result in improving the effectiveness of the
governance processes, risk management and control.
However, some empirical evidence suggest that internal auditors’ effectiveness may not be always
achieved for numerous reasons
Prior study confirmed that the management support, competency, the IA Department size,
independence and internal-external auditors’ association are crucial factor that influence the IA
effectiveness in public sector
Previous studies reported that public sector’s complex environment may have affected the
different IA task and service delivery approach.
There is scant literature on IA effectiveness in Jordan. There is necessity for further research to
empirically examine the factors influencing the effectiveness of IA
  Hubungan antar variable

Variabel Dependent
Variable Independent

Variabel Moderating
 Masalah Penelitian
Only few empirical studies have been conducted on Internal Audit.
Only few study considering the complexity of IA task within the public
sector environtment
The previous study have employed the task complexity as a contextual
variable in several domains. Employing task complexity as a context
within which IA takes place could produce a diverse perspective of the
current debates in the IA function.
This study could probably identify the origin of the issue and give a
better solution for the ineffectiveness of IA in the public sector
 Kajian Pustaka
 Theory - Resource Based Theory
a. explains the relationships between the exogenous and endogenous variables addressed in
the current study. A basic assumption of the theory is that
b. the organisations are heterogeneous
c. Resources include all assets, knowledge, organisation attributes, capabilities and
information, which are managed by the organisations and enable them to implement the
strategies that increase their effectiveness and efficiency
d. If an organisation has a number of internal resources or distinguished capabilities to a
greater extent, the organisations will be able to perform the strategies that improve their
effectiveness
 Penelitian Terdahulu
a. The modern IA has been created on “the three E’s of Effectiveness, Efficiency and Economy” (Ridley, 2008, p. 287).
b. effectiveness as doing the right thing, efficiency means doing it well and economy means doing it cheaply” Chambers
(1992) (p. 22).
c. “if IA is ineffective, it does not matter how economically the service was performed”, namely, “the most irrelevant areas
can be audited in a highly efficient way” Lenz (2013, p. 26)
d. Effectiveness is perceived as the key factor to fulfil the objectives (Khalid et al., 2017).
e. On the other hand, stated that an organisation that is operating without an effective IA department faces a lot of confusion in
carrying out its activities. Al-Twaijry et al. (2003)
f. The internal auditors’ effectiveness is extremely desirable because it may enable the public sector institutions to achieve
progress in their routine activities (Unegbu and Kida, 2011).
g. the internal auditors’ effectiveness may not be always achieved for numerous reasons (Abu-Azza, 2012; Mihret et al.,
2010;Chambers and Odar, 2015; Christopher, 2018)
h. the ineffectiveness of IA has been provided by previous research (Endaya and Hanefah, 2016; Ahmad et al., 2009; Salehi,
2016; Alzeban and Gwilliam, 2014).
i. the management support, competency, the IA department size, independence and internal-external auditors’ association are
crucial factors that influence the IA effectiveness in the public sector (Ahmad et al. (2009) and Alzeban and Gwilliam
(2014)
j. the public sector’s complex environment may have affected the different IA tasks and service-delivery approaches (Onumah
and Krah, 2012).
k. the performance of auditors cannot be generalised to various task
complexities. Mohd-Sanusi and Mohd-Iskandar (2007)
 Hipotesis
 There is a positive association between external auditors’ cooperation and internal
auditors’ effectiveness (H1)
 There is a positive association between top management empowerment and internal
auditors’ effectiveness (H2)
 There is a positive association between internal auditors’ independence and the
internal auditors’ effectiveness (H3)
 The association between top management empowerment and internal auditors’
effectiveness is moderated by task complexity (H4a)
 The association between internal auditors’ independence and internal auditors’
effectiveness is moderated by task complexity (H4b)
 H4c. The association between external auditors’ cooperation and internal auditors’
effectiveness is moderated by task complexity (H4c)
 Metode Penelitian
 Metode Pengumpulan Data
a. Questionare for financial manager was on the effectiveness of the IA function
b. Questionare for IA manager was on exogenous variable (external auditors’
cooperation Management, top management empowerment, internal auditors’
independence, task complexity)

 Definisi Operasional Variabel

a. the dependent variable were measured on a five-point scale (1=strongly disagree to
5=strongly agree).
b. the independent variable were measured on a five-point scale (1=strongly disagree to
5=strongly agree).
c. The moderator variable use eight task complexity item
 Metode analisis
Partial least squares-structural equation modelling (PLS-SEM)
3.0, is a set of statistical techniques used to measure and
analyze the relationships of observed and latent variables

 Model Penelitian
Direct effect model for examine the association between the
independent and dependent variable
Interaction model for examine moderation effect
 Hasil penelitian

 Jumlah sample
Population: 287 institution
Sample: 117 institution
(18 the ministries, 15 in independent bodies, 7 in public
universities and 77 in the governorates)
 Deskriptif Statistik

The AVE square root

Cronbach’s alphas, VIF,

CR, AVE and F2
 Hasil pengujian hipotesis

The result of main effect

model

The result of the interaction

model
  Pembahasan

1. the effect of the EAC on the internal auditors’ effectiveness is positive and significant. The findings confirm the belief that
a greater level of internal-external auditors’ cooperation leads to enhanced effectiveness of the internal auditors’ work.
This finding is in line with the Resource-Based Theory (Barney, 1991), which posits that the relationships within an
organization imply that the human capital resource assists the organization in achieving its objectives.
2. The effect of the empowerment is positive and significant on the internal auditors’ effectiveness. This result is in line with
the prediction of the Resource-Based Theory, which suggests that sufficient internal resources are required to achieve a
superior performance (effectiveness). In view of this, the internal auditors’ effectiveness can be achieved by sufficient
empowerment (capabilities) from the top management.
3. The effect of the internal auditors’ independence is positive and significant on the internal auditors’ effectiveness. The
finding of this study confirms the prediction that the greater level of internal auditors’ independence will increase the
effectiveness of their audit works In line with the Resource-Based Theory’s prediction, if organizations have a number of
distinct internal capabilities to a greater extent, the organizations are capable of executing strategies that improve their
effectiveness (Barney, 1991)
 ..lanjutan pembahasan

4. The moderating influence of the complexity is partly confirmed, whereby two hypotheses are
supported (H4b and H4c). Precisely, the interaction effect between complexity and (H4b) is
positive and significant. This indicates that although the adequate empowerment of the
internal auditors is perceived to be important to achieve an effective IA function, a high
degree of complexity of the IA task will increase the effect of the empowerment on the
internal auditors’ effectiveness. In a highly complex environment in the Jordanian public
institutions, the internal auditors require a high level of empowerment from the top
management to be able to conduct their tasks. In addition, the interaction effect between
complexity and independence (H4c) is positive and significant. This indicates that under a
high level of complexity of the IA task in the Jordanian public institutions, the internal
auditors necessitate high levels of independence to carry out their audit tasks effectively.
 Kesimpulan
 Implikasi
1. The study illustrates that varying levels of complexity lead to varying levels of the effect of the factors on
the effectiveness of the internal auditors. Further, compared to other works on internal auditors’
effectiveness in developing countries (Badara and Saidin, 2013; Mihret et al., 2010; Alzeban and
Gwilliam, 2014), the findings of the current study are quite unexpected.
2. Factors affecting the internal auditors’ effectiveness can strongly be affected by the different complexity
levels of the internal auditors’ tasks, especially in the public sector, which is a complex and extensive
sector which is a complex and extensive sector.
3. Decision-makers or any stakeholders who are interested in enhancing the public sector’s internal audit
should take into account the different levels of task complexity in different public institutions. In addition,
policy-makers must emphasise on developing the strategies to improve the independence and
empowerment of the internal auditors, besides providing the means and tools to facilitate the mutual
internal-external auditors’ cooperation.
 Keterbatasan
It is noted that the results of the current study are based on the Jordanian
public sector’s IA setting. Accordingly, any generalization of the results
to other settings should be handled with caution. It is probable that the
findings would be different in other sectors or countries. In spite of these
limitations, the current study confirms the significance and relevance of
the scientific examination of the internal auditors’ effectiveness and its
determinants supported by the Resource-Based Theory with the
moderating effect of complexity.
 Saran untuk penelitian berikutnya
1. this study concentrated on the contextual environment of the public sector and its
effect on the internal auditors’ tasks between the respective factors and IA
effectiveness, namely, task complexity. Hence, future studies could investigate the
influences of other factors, such as the organisational culture, pay satisfaction and
other factors that may influence the IA effectiveness.
2. This study examined the research assumptions related to the internal auditors’
effectiveness as internal auditors need to achieve assigned objectives to be
effective. Therefore, future research can test the internal auditors’ effectiveness as
it may be more important to combat corruption, especially in the public sector.
Kemungkinan Pengembangan
 Rencana Judul
1. Factor affecting the internal auditors’ effectiveness at
BPKP Perwakilan X
The moderating effect of organization culture

2. Factor affecting the internal auditors’ effectiveness at

BPKP Perwakilan X
The moderating effect of work infrastructure
 Isu/Fenomena Penelitian
Auditor internal bisa diartikan sebagai lembaga audit internal maupun individu
auditor yang bertugas sebagai auditor internal. Penelitian sebelumnya lebih mengarah
pada menguji variabel yang mempengaruhi efektifitas auditor internal dipandang dari
entitas auditor internal, bukan pada individu auditor internal. Efektifitas lembaga
auditor internal tidak terlepas dari efektifitasi personal auditor. Untuk itu, perlu
dilakukan penelitian terkait faktor yang mempengaruhi auditor internal secara
personal dengan berdasarkan Resource Based Theory yang menyebutkan resources
organisasi meliputi all asset, knowledge, organization attribute and capability and
information. Selain itu, diperlukan pemahaman terkait variable yang mempengaruhi
efektifitas tersebut, berupa organization culture atau work infrastructure
 Masalah Penelitian
BPKP adalah auditor internal pemerintah yang ditetapkan melalui Perpres 192
tahun 2014. Perwakilan BPKP Provinsi X merupakan bagian dari BPKP yang
menjalankan fungsi auditor internal sesuai perpres 192 tahun 2014 dengan
jumlah personil auditor sebanyak 72 orang (69,9 % dari total personil). Untuk
memastikan peran BPKP Perwakilan X dapat tercapai dengan jumlah personil
auditor yang terbatas dengan lingkup penugasan yang besar, perlu diketahui
faktor yang mempengaruhi efektifitas auditor dalam menjalankan tugasnya
dilihat dari personal faktor yang dimoderasi oleh organization culture atau
work infrastructure
 Factor affecting the internal auditors’ effectiveness at BPKP Perwakilan X
The moderating effect of organization culture

 Hubungan antar variable

Variabel Dependent
Variable Independent

Knowledge

Experience

Satisfaction

Organization
Culture

Variabel Moderating
 Factor affecting the internal auditors’ effectiveness at BPKP Perwakilan X
The moderating effect of work infrastructure

 Hubungan antar variable

Variabel Dependent
Variable Independent

Knowledge

Experience

Satisfaction

Work
Infrastructure

Variabel Moderating