Volume 18, No. 5, 2021
Senior Management Support As A Moderation Of The Influence Of Organizational Culture And Characteristics Of Internal Auditors On The Effectiveness Of Internal Audits
Betri , Etty Murwaningsari
Abstract
This study is to examine the influence of organizational culture and internal auditor characteristics on the effectiveness of internal audit with the support of senior management as a moderating variable in the banking industry in South Sumatra and Jakarta. Data were collected through questionnaires and semi-structured interviews with the Internal Auditor and Director, with a study sample complemented by a review of relevant documentary evidence. . The data analysis method used is Structural Equation Modeling (SEM) by implementing the rule of thumb assessing Convergent Validity, Discriminant Validity, Reliability, F test hypothesis testing, Coefficient of Determination (R2), Moderated Regression Analysis (MRA) and t test. The results showed: Organizational Culture, Internal Auditor Characteristics, Senior management support had a positive and significant effect on the effectiveness of internal audit. Senior management support strengthens the influence of organizational culture on the effectiveness of internal audit and weakens the influence of internal auditor characteristics on the effectiveness of internal audit. Organizational Culture, Internal Auditor Characteristics, and Senior Management Support have a positive and significant effect on Internal AuditorEffectiveness. The results have implications in strengthening the effectiveness of internal audit, the need for interaction between internal auditors and elements of the organization as well as elements of leadership within the company to carry out recommendations on the results of internal audit. In contrast to most previous studies, this study lies on indicators of internal auditor characteristics (integrity, capability, locus of control and ethical awareness). Besides, the second novelty lies in the role of the effectiveness of internal audit in improving corporate governance, risk management and management control
Pages: 302-324
Keywords: Organizational Culture, Internal Auditor Characteristics, Senior Management Support, Internal Audit Effectiveness