DETERMINANTS OF AUDIT RISK ASSESSMENT FOR GOVERNMENTAL AUDITS IN INDONESIA: A STUDY OF THE NATIONAL AUDIT BOARD OF THE REPUBLIC OF INDONESIA

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Abstract

This study aimed to determine the influence of: geography, demography and topology; culture; maturity of organization (age of government); maturity of people; auditor’s capability in the assigned region; expertise / education level; and experience of auditing team in risk assessment; on the examination of audit risk by The National Audit Board of The Republic of Indonesia (Badan Pemeriksa Keuangan (BPK) in Indonesia. This study found the factors affecting the audit risk model in general. This study identified several factors that influence the determination of audit risk assessment which occur when conducting local governmental audits in Indonesia. This study was conducted by identifying the factors that might influence the risk of audit used by The National Audit Board. The results of the identification are elaborated in some of the items included in the questionnaire. The number of respondents in this study was 143 respondents as Auditors of The National Audit Board in Indonesia. This study conducted multiple regression analysis. Maturity of people, auditor’s capability, and expertise level have a significant influence on the risk assessment. These factors are derived from an auditor’s judgment when they perform the examination seen from the condition of local government in Indonesia

Keywords: Auditing, Audit Risk, Local Government, Indonesia

How to cite this paper: Probohudono, A.N., Payamta, P., Hantoro, S. (2015). Determinants of audit risk assessment for governmental audits in Indonesia: a study of the national audit board of the republic of Indonesia. Corporate Ownership & Control, 13(1-3), 379-388. https://doi.org/10.22495/cocv13i1c3p6