Literature Review: The Influence of Internal Control Systems and the Role of Internal Audit on Good Corporate Governance

Finance

Authors

  • Josua Panatap Soehaditama Institut Keuangan dan Perbankan dan Informatika Asia Perbanas, Jakarta, Indonesia
  • Nyoman Sawitri Universitas Bhayangkara Jakarta Raya, Jakarta, Indonesia

DOI:

https://doi.org/10.38035/gijea.v1i4.139

Keywords:

internal audit, internal control system, Good Corporate Governance

Abstract

Internal Audit has the function of helping companies achieve their business goals by evaluating and improving the effectiveness of the company's internal control system, risk management and business processes. Internal audit is also responsible for making recommendations for changes and ensuring that the organization follows all applicable laws and regulations. Through the implementation of GCG principles, companies can ensure that the internal control system is implemented effectively and efficiently, and ensure that all stakeholders are respected and treated fairly. The relationship between this research is the importance for companies to develop and strengthen internal control systems, increase the effectiveness of internal audits, and ensure management's commitment to implementing good GCG practices in the company. This literature shows that the internal control system, the role of internal audit, and management commitment significantly influence Good Corporate Governance practices. Several studies show that implementing GCG principles helps companies increase transparency, accountability and compliance with organizational regulations.

References

Mulyadi. (2014). Accounting Systems. Third edition. Yogyakarta: Salemba Empat

Indonesian Institute of Accountants (IAI). 2001. Public accounting accounting standards. SA Section 319, Considerations for Internal Control in Financial Statement Audits.

Afiah, Nunuy Nur and Peni Cahaya Azwari. 2015. The Effect Of The Implementation Of Government Internal Control System On The Quality Of The Financial Reporting Of The Local Government And Its Impact On The Principles Of Good Governance: AResearch In District, City, And Provincial Government In South Sumatera. Procedia Social and Behavioral Sciences 211 ( 2015 ), p. 811 – 818.

Arifudin, O., Juhadi, J., &; Sofyan, Y. (2020). The influence of internal control system and internal audit on the implementation of good corporate governance. Jemasi: Journal of Management Economics and Accounting, 16(2), 17–32.

Saputra, A. (2017). System Influence Internal, Control, Internal Audit and Implementation Good Corporate Governance Against Cheating (FRAUD) development (Study Case of Sharia Bank, a state-owned subsidiary in Medan). Research and Journal of Accounting, 1(1), 48–55.

Zeyn, E. 2011. The effect of good governance and government accounting standards on financial accountability and organizational commitment as moderation. Accounting and Finance 1 (1): 21-37.

Andriyanto. 2013. Effects of Control Internal and Application of Principles-Principles of Good Corporate Governance on Managerial Performance (Empirical Study at PT. BRI Jember Branch. Thesis. Faculty of Economics, Jember University.

Downloads

Published

2024-02-02

How to Cite

Soehaditama, J. P., & Nyoman Sawitri. (2024). Literature Review: The Influence of Internal Control Systems and the Role of Internal Audit on Good Corporate Governance: Finance. Greenation International Journal of Economics and Accounting (GIJEA), 1(4), 543–549. https://doi.org/10.38035/gijea.v1i4.139

Issue

Vol. 1 No. 4 (2023): (GIJEA) Greenation International Journal of Economics and Accounting (December 2023)

Section

Articles

License

Copyright (c) 2024 Josua Panatap

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright :

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. Copyright in each article belongs to the author.
  2. The author acknowledges that the GIJEA has the right to be the first to publish under a Creative Commons Attribution 4.0 International license (Attribution 4.0 International CC BY 4.0).
  3. Authors can submit articles separately, arrange the non-exclusive distribution of manuscripts that have been published in this journal to other versions (for example, sent to the author's institutional repository, publication in a book, etc.), by acknowledging that the manuscript has been published for the first time at GIJEA.