The Influence of Internal Auditor’s Competency and Independency to the Internal Auditor’s Due Professional Care and the Implication to the Internal Audit Quality

Abstract

Internal audit quality in the local government of Lumajang regency was poor, indicated from the financial statement quality for years of 2006 until 2013 that not yet get unqualified opinion from the Supreme Audit Institution of Indonesia (BPK-RI). The purpose of this research was to examine the influence of auditor’s competency and independency to the auditor’s due professional care and it’s impact on internal audit quality.Using path analysis with Partial Least Squares (PLS) method on the data that obtained through questionair survey to the 24 teams of internal uditors form local government of Lumajang regency. The results showed that the competency and independency of the internal auditor's have positive influence to the internal auditor’s due professional care. Furthermore, both internal auditor’s competency, independency, and due professional care have a positive influence on the internal audit quality. In other words, internal auditor’s due professional care mediate the relationship between intyernal auditor’s competency and independency to the internal audit quality.To increase internal auditor’s due professional care in order to improve internal audit quality, can be done by increasing the internal auditor’s competency and independency and also supported with more adequate quality control (e.g. supervision, peer review, etc).

Keywords: Competency, Independency, Due Professional Care, Internal Audit Quality