Title: The effect of internal auditor competence and objectivity, and management support on effectiveness of internal audit function and financial reporting quality implications at local government

Authors: Rindu Rika Gamayuni

Addresses: Accounting Department, Economic and Business Faculty, Lampung University, Sumantri Brojonegoro Street No. 1, Lampung Province, 35145, Indonesia

Abstract: Governmental internal auditors have an important function at the central and local government, but the internal audit function is still not effective, and needs to be improved. Therefore, this research aims to examine the effect of the internal auditor competence and objectivity, and management support on the effectiveness of the internal audit function, and its implication on the quality of financial reporting. This research uses survey method with description verification approach, and it is conducted on local government at Java Island, Indonesia. Primary data was statistically tested by using SEM partial least square (PLS). This research has shown that the internal auditor competence and objectivity, and management support have significant influence to the effectiveness of the internal audit function. Moreover, the internal auditor competence and objectivity and the effectiveness of the internal audit function have significant influence to the financial reporting quality.

Keywords: internal auditor competence; objectivity; management support; effectiveness of internal audit function; financial reporting quality.

DOI: 10.1504/IJEPEE.2018.093951

International Journal of Economic Policy in Emerging Economies, 2018 Vol.11 No.3, pp.248 - 261

Received: 28 Nov 2015
Accepted: 14 Dec 2015
Published online: 10 Aug 2018 *

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