The Role of Risk Based Internal Audit in Improving Audit Quality

Abstract

This research was conducted with the aim of identifying the internal auditor's understanding of Risk Based Internal Audit (RBIA), identifying the application of risk assessment and risk matrix in the Government of North Sumatra Province. Produce driving and inhibiting factors for the application of risk based internal audit in the Government of North Sumatra Province. This research was conducted using quantitative approaches. The research population is internal auditors in the local government, while the informants in this study are people who understand the problems of implementing Risk Based Internal Audit. The variables that are thought to affect the successful implementation of risk based internal audit are the role of the internal auditor function, top management commitment, training, policy framework, and communication processes. The results showed that top management commitment, training, policy framework had a significant effect on the success of risk management implementation, while the role of the internal audit function and the communication process had no significant effect on the application of risk based internal audit. The results showed that the application of risk based internal audit has a significant effect on the quality of internal audit.

Keywords: risk based internal audit, top management commitment, training, policy framework, communication process