Advances in Managerial Auditing Research

The Impact of Internal Audits on the Effectiveness of Hospital Internal Control Systems

2026-04-23T15:22:26+07:00

Purpose: This study aims to analyze the impact of internal audits on the effectiveness of the internal control system in the Nursing Department at the PT KBN Graha Medika General Hospital.

Research Method: This study employed a quantitative, associative design. The sample consisted of 111 respondents selected through simple random sampling. Data were collected via an online questionnaire and analyzed using simple linear regression.

Results and Discussion: Internal audits have a positive and significant impact on the effectiveness of internal control systems. This suggests that improvements in the quality of internal audit performance are accompanied by greater effectiveness of internal controls. However, their contribution remains limited, indicating that other factors are also at play.

Implications: This study makes an empirical contribution by examining the role of internal audits in the operational context of nursing care. This topic has received limited attention in the literature. The findings confirm that internal audits serve as an evaluative mechanism for strengthening internal controls; however, their effectiveness depends on their implementation and support from other organizational factors.

Originality: to examine the impact of internal audits on the effectiveness of internal control systems in the context of nursing operations in hospitals.

The Application of Green Accounting in Industrial Wastewater Management

2026-05-01T19:13:38+07:00

Purpose: This study aims to examine the application of green accounting in waste management at PT. ABCDE, focusing on five stages of environmental cost allocation: identification, recognition, measurement, presentation, and disclosure.

Research Method: This research used a descriptive qualitative approach. Data were collected through interviews, observation, and documentation at PT. ABCDE is a company that manages liquid waste from production processes. Data were analyzed using the Miles and Huberman model, consisting of data reduction, data presentation, and conclusion drawing.

Results and Discussion: The findings show that PT. ABCDE has applied green accounting in the stages of recognition, measurement, and disclosure. Environmental costs are recognized on an accrual basis, measured using historical cost, and disclosed in the notes to the financial statements. However, the identification and presentation stages are not fully aligned with applicable accounting standards because environmental costs are still combined with general administrative expenses. This indicates that the company’s environmental cost reporting requires further improvement.

Implications: The study suggests that PT. ABCDE should separate environmental costs from general expenses and present them more transparently in financial reports.

Originality: This study provides specific insight into the implementation of green accounting based on five environmental cost allocation stages in liquid waste management.

Adoption of Big Data Analytics in Indonesian Public Sector Auditing

2026-05-22T06:48:07+07:00

Purpose: This study aimed to examine the adoption of big data analytics (BDA) in public sector auditing in Indonesia, based on empirical data collected in 2022. The growing use of digital technologies in audit processes is expected to improve effectiveness and efficiency; however, their implementation also demands considerable financial and organizational resources. Thus, it is important to explore both the benefits and challenges of BDA adoption in the public sector context.

Research Method: Data were collected through in-depth semi-structured interviews with eight auditors from IT and non-IT backgrounds. A qualitative approach was used to analyze the data, supported by a big data governance framework.

Results and Discussion: The findings indicate that BDA adoption in Indonesian public-sector auditing remains at an early stage. Although BDA offers opportunities such as improved red-flag detection, full-population analysis, and enhanced audit effectiveness and efficiency, several challenges remain, including platform stability, data accessibility, and human resource readiness.

Implications: This study provides empirical evidence on the processes, opportunities, and challenges of BDA utilization from the perspective of public-sector auditors. Future studies should examine further developments in BDA use in Indonesian public institutions and offer new perspectives through different participants or methods. BPK is expected to prioritize human resource readiness and platform development.

Originality: This study contributes to the limited empirical research on BDA utilization in public sector auditing by presenting insights from auditors’ perspectives.

Insights into Financial Statement Audits and Assurance Practices

2026-05-23T01:44:35+07:00

Purpose: This study aims to provide a comprehensive examination of financial statement audits and assurance practices by enriching the understanding of key concepts, methodologies, and empirical findings in this field.

Research Method: This research employed a qualitative literature review method. The study systematically analyzed scholarly works, theoretical frameworks, and empirical studies related to financial statement audits and assurance practices. The research process involved identifying relevant literature sources, collecting data, analyzing findings, and synthesizing recurring themes, empirical trends, and gaps in the existing literature.

Results and Discussion: The findings highlight the importance of auditor independence, professional skepticism, and robust audit procedures in ensuring audit quality and the integrity of financial reporting. The study also shows that corporate governance mechanisms, regulatory reforms, and technological advancements play an important role in shaping audit practices.

Implications: The findings emphasize the need for continuous professional development, stronger regulatory oversight, and investment in technological capabilities to improve audit quality, effectiveness, and relevance in a rapidly changing business environment. Future research is recommended further to examine emerging issues in audit and assurance practices.

Originality: This study offers an integrated literature-based perspective on financial statement audits and assurance practices by synthesizing key concepts, empirical trends, and research gaps in the field.

The Effect of Audit Quality and Audit Committee on Financial Reporting Quality

2026-06-06T23:23:04+07:00

Purpose: This study aims to examine the effect of audit quality and audit committee on financial reporting quality in hotel sector companies listed on the Indonesia Stock Exchange (IDX) during 2019–2023. Based on agency, signaling, and corporate governance theories, this study proposes that higher audit quality and more effective audit committees positively influence the quality of financial reporting.

Research Method: This study employed a quantitative approach with descriptive and verificative methods. Secondary data were obtained from audited financial statements and annual reports of 31 hospitality subsector companies listed on the IDX from 2019 to 2023, yielding 155 observations. Audit quality was measured by KAP Big Four reputation, audit opinion, auditor switching, and audit fee disclosure. The audit committee was measured by size, independence, and financial expertise. Financial reporting quality was proxied by absolute discretionary accruals, as measured by the Modified Jones Model. Data were analyzed using multiple linear regression with SPSS version 29.

Results and Discussion: The findings show that audit quality partially has a significant positive effect on financial reporting quality, particularly through KAP Big Four reputation and audit opinion. Audit committee characteristics do not individually show significant effects, indicating symbolic compliance rather than substantive oversight. Simultaneously, audit quality and the audit committee significantly affect financial reporting quality.

Implications: The findings suggest that companies should strengthen audit committee effectiveness beyond formal structure, while regulators should enhance oversight of audit committee performance.

Originality: This study provides empirical evidence from the Indonesian hospitality sector by highlighting the dominance of external audit credibility over internal governance mechanisms in improving financial reporting quality.