PERAN INTERNAL AUDIT DALAM PENGUNGKAPAN KELEMAHAN MATERIAL (STUDI PADA BANK PERKREDITAN RAKYAT SE PROVINSI RIAU)

Abstract

This study aims to test empirically the effect of the role of internal audit on the
disclosure of material weaknesses in the Bank Perkreditan Rakyat of Riau
Province. The role of internal audit is divided into two namely, 1) Attributes
internal audit function (such as, competence, objectivity and investment), and 2)
Fitness internal audit function (such as, grading, follow-up and coordination)
tested the effect on the disclosure of material weaknesses.The questionnaire was
sent to 111 internal auditors / Internal Audit Unit at a Bank Perkreditan Rakyat of
Riau Province. The participation rate amounted to 64.86% of respondents (72
questionnaires returned) To test the hypothesis of the study, used Partial Least
Square analysis using the program smartPLS 2.0 M3. .The results of this study
indicate that 1) attribute of the internal audit function (form, competence,
objectivity and investment) influence on the material weakness disclosure, 2)
internal audit function Activities (in the form of grading, follow-up and
coordination) to the disclosure of a material weakness.