The Influence of the Effectiveness of the Internal Audit Function on Good Governance: An Empirical Study
Keywords:
Internal Audit Effectiveness, Good Governance, Public Sector, SPSS.Abstract
Good governance requires accountability, transparency, responsiveness, and integrity. The internal audit function (IAF) is an essential mechanism to promote these principles by strengthening internal control and providing independent assurance. This study applied a quantitative descriptive design using purposive sampling of 12 respondents directly engaged in internal audit and governance processes within a public sector organization. Data were collected using a structured questionnaire adapted from prior studies and analyzed with SPSS, employing descriptive statistics, reliability tests, correlation, and regression. Correlation analysis revealed a significant positive relationship between internal audit effectiveness and good governance (r = 0.687, p < 0.05). Regression analysis showed that internal audit effectiveness explained 47.2% of the variance in governance (R² = 0.472, β = 0.687, p = 0.014). The findings demonstrate that effective internal audits significantly enhance good governance. Strengthening auditor independence, competence, and resources is essential for improving accountability and transparency. Despite the small sample size, the study provides valuable insights for policymakers and public organizations. Future research should use larger samples and advanced statistical methods such as SEM.
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