Fuji Anggun Cahya Cahya, Rudy Kurniawan, Syarbini Ikhsan

Senior Management Support Moderates the Influence of Auditor Characteristics on Internal Audit Effectiveness

Introduction

Senior management support moderates the influence of auditor characteristics on internal audit effectiveness. Study shows auditor integrity & moral courage impact internal audit effectiveness, strengthened by senior management support. Focuses on public sector internal control at BPKP using SEM-PLS.

Abstract

This study aims to examine and analyze the influence of internal auditor integrity and moral courage on internal audit effectiveness, as well as to evaluate the moderating role of senior management support. The object of this research is internal auditors working at the BPKP Representative Office of West Kalimantan Province. The sample was determined using a census method involving 43 auditors. Primary data were collected through questionnaires. The analysis method used in this study is structural equation modelling (SEM) with a partial least squares (PLS) approach, processed using the warp-PLS 8.0 application. The novelty of this study lies in the use of warp-PLS, which is still rarely applied in internal audit research, and the specific focus on internal auditors at BPKP, a government institution with a strategic role in public sector supervision. The results show that internal auditor integrity and moral courage have a positive and significant effect on internal audit effectiveness. Furthermore, senior management support is proven to strengthen the connection between individual auditor characteristics and audit effectiveness. This research highlights the importance of integrity, moral courage, and organizational support in building an effective and accountable internal control system, especially within the public sector.   Abstrak - Penelitian ini bertujuan untuk menguji dan menganalisis pengaruh integritas auditor internal dan keberanian moral terhadap efektivitas audit internal, serta melihat peran dukungan manajemen senior sebagai variabel moderasi. Objek dalam penelitian ini adalah auditor internal yang bekerja di BPKP Perwakilan Provinsi Kalimantan Barat. Sampel diperoleh dengan teknik sensus terhadap 43 auditor. Data primer dikumpulkan melalui penyebaran kuesioner. Metode analisis yang digunakan dalam penelitian ini adalah structural equation modeling (SEM) dengan pendekatan partial least squares yang diolah menggunakan aplikasi warp-PLS 8.0. Penggunaan aplikasi warp-PLS dan fokus objek pada auditor internal di lingkungan BPKP merupakan novelty dalam penelitian ini, karena penelitian sebelumnya umumnya menggunakan SPSS atau smart-PLS dan belum banyak mengkaji konteks BPKP. Hasil penelitian menunjukkan bahwa integritas auditor internal dan keberanian moral berpengaruh positif dan signifikan terhadap efektivitas audit internal. Selain itu, dukungan manajemen senior terbukti memperkuat hubungan antara karakteristik individu auditor dengan efektivitas audit. Penelitian ini menegaskan pentingnya nilai integritas, keberanian moral, dan dukungan organisasi dalam menciptakan sistem pengawasan internal yang efektif dan akuntabel, terutama di sektor publik.

Review

This study offers a pertinent investigation into the factors influencing internal audit effectiveness, specifically examining the roles of internal auditor integrity, moral courage, and the crucial moderating influence of senior management support. The clarity of the title accurately reflects the research's core objectives and contributions. The findings, which indicate that both integrity and moral courage positively impact internal audit effectiveness and that senior management support significantly strengthens this relationship, underscore the importance of both individual attributes and organizational context. This research provides valuable insights, particularly within the often-complex environment of public sector auditing, reinforcing the notion that effective internal control systems hinge on more than just technical competence. A notable strength of this research lies in its specific focus on internal auditors within a government institution, the BPKP Representative Office of West Kalimantan Province. This provides a specialized context that can yield unique insights into public sector accountability. The inclusion of moral courage as a variable alongside integrity is particularly relevant, reflecting the challenging ethical dilemmas auditors often face. Methodologically, the claim of novelty in utilizing warp-PLS 8.0 for structural equation modeling is intriguing, suggesting an exploration of advanced analytical tools that may offer distinct advantages over more commonly used software in this field, potentially enhancing the rigor of the statistical analysis. Despite its contributions, several limitations should be considered. The sample size of 43 auditors from a single BPKP office is relatively small and consequently restricts the generalizability of the findings to a wider population of internal auditors, whether across other BPKP offices, different government agencies, or the private sector. Furthermore, the reliance on self-reported data via questionnaires introduces the potential for common method bias or social desirability bias, which could influence the validity of the reported relationships. Future research would significantly benefit from expanding the sample size and scope to include multiple institutions, employing diverse data collection methods (e.g., incorporating objective performance metrics or qualitative interviews), and potentially exploring the specific mechanisms through which senior management support operationalizes its moderating effect.

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