Business Process Automation: Internal Audit Function Adaptation Lesson Learned from Indonesian Public Sector

Abstract

The purpose of this study is to analyze the transformation of the Inspectorate General (ITJEN) at the Ministry of Finance as an impact of the Directorate General's (DGT) Taxation System Information (SIDJP) implementation. This study uses a case study and a qualitative approach with institutional theory to study the problem. Data collection is performed via documentation and interviews with key informants from the Institute of Internal Auditors (IIA), the DGT of Taxation, the Indonesian Supreme Audit Institution, the State Development Audit Agency, and the Auditor of Inspectorate General of Ministry of Finance. This study shows that the implementation of SIDJP engendered adaptation of ITJEN's scope and practice, structure, auditor skill requirements, audit tools, audit sizes, and relationship with information technology departments, whereas the audit source and its relationship with the external auditor remained the same.

The mediating effect of data analytics on the relationship between organizational psychological safety and advisory services

“…It will affect the IAF of the government's internal auditors to use digital technology more in the audit process (Fuadi, 2020). Moreover, the result of the study by Yustiani and Ichsan (2019) and Febrian and Darono (2020) shows that the ministry's inspectorate auditors in Indonesia have started using data analytics when carrying out audits. Several works of literature and the findings of previous studies have clarified that the use of data analytics can improve the IAF in providing AS (Cascarino, 2017;Betti and Sarens, 2020;van Veenstra et al, 2020;Betti et al, 2021;Rakipi et al, 2021).…”

“…It will affect the IAF of the government’s internal auditors to use digital technology more in the audit process (Fuadi, 2020). Moreover, the result of the study by Yustiani and Ichsan (2019) and Febrian and Darono (2020) shows that the ministry’s inspectorate auditors in Indonesia have started using data analytics when carrying out audits.…”