The Influence of Reporting Relationship and Type Deficiency Towards Internal Auditor’s Evaluation: an Experimental Study

Lyra Raisa Fadhila, Imas Nurani Islami


Misreporting the internal control evaluation by internal auditor may lead to the losses for a company. The poor quality of internal control that was not being known by the committee may lead employee for doing something that its bad for a company, for instance fraud. Previous study recognizes there are two factors may influence the internal auditors’ evaluation (reporting relationship and type of deficiency). This study wants to examine whether the type of internal control deficiency and the two parties that has a reporting relationship with IAF (internal audit function) influence the internal control evaluation by internal auditors. The two parties that has a reporting relationship with IAF are typically have influence and oversight responsibility over the IAF. iBy conducting a behavioral experiment in 2x2 between-subjects factorial design with internal auditor as participant, this study proved there is an influence between the type of deficiency and internal control evaluation. In contrast with prior study, this study could not prove the effect from the party that has a greatest influence over IAF toward internal control evaluation. This study encourages future research to examine the usefulness of the role of the external auditor, and other parties charged with corporate governance, in mitigating any bias from this study.

Keywords: Internal Auditor, Audit Committee, Top Management, Internal Control Deficiency, Internal Audit Function


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Jurnal Akuntansi dan Bisnis (JAB)
ISSN 1412-0852 (print), 2580-5444 (online)
Published by Accounting Study Program, Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia

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