THE INFLUENCE OF INDIVIDUAL RANK AND WORKING EXPERIENCE ON PROFESSIONALISM OF INTERNAL AUDITOR (Study on Internal Auditors of Public Corporation at Manufacturing Sector Listed in The Jakarta Stock Exchange)
Abstract: One of the causes of
economic crisis and failure experienced by a number of Indonesian companiesis
the corporate governance. If the internal audit can be properly implemented, it
will contribute to improving the process of corporate governance, risk
management, and managementcontrol. This research attempts to obtain empirical
evidence and better understanding concerning: (1)) the correlation between
individual rank with working experience in manufacturingsector listed at the
JSX; (2) the influence of individual rank and working experience on the
internal auditors professionalism of public companies in manufacturing sector
listed at the JSX either partially and simultaneously. The type of research
employed in this study is causal relationship by using the census method for
120 internal auditors of public companies in manufacturing sector at the JSX.
The data this study consist of both primary and secondarydata. Reliability and
validity tests were conducted to examine the questionnaires. SEM (Structural
Equation Modeling) is used to examine the correlation as well as the effect of
the variable. It was found that (1) there is correlation between individual
rank and internal auditorsworking experience and between internal auditors
working experience (R2 =0.52); (2) individual rank and working experience
partially influence the internal auditors professionalismfor with the levels of
influence are 6%, and 20% respectively, whilst their simultaneous effect is
30%.
Author: Gunarianto
Journal Code: jpakuntansigg100040
