Factors Influencing Red Flags and Leadership Behavior that Impact Internal Audit Quality at Inspeção Do Estado (IGE) Timor Leste
Universitas 17 Agustus 1945 Surabaya, Indonesia & Universidade Da Paz Timor-Leste
Tri Ratnawati
Universitas 17 Agustus 1945 Surabaya, Indonesia,
Slamet Riyadi
Universitas 17 Agustus 1945 Surabaya, Indonesia
Abstract
This research aims to look at the quality of internal audits in all Timor-Leste ministries, where in fact the quality of internal audits in Timor-Leste ministries is still of low quality, because the quality of internal audits is greatly influenced by the political behavior of leaders and red flags, so that auditor integrity, auditor competence, auditor independence and auditor work pressure are factors that greatly influence the quality of internal audits. Then, the absence of a single rule and system that can be used by all Timor-Leste auditors in carrying out audits is a major factor that can influence the quality of internal audits. Method used is the explanatory research method. This research used simple random sampling with a total of 88 auditors in the Ministry of Timor-Leste. The research results show that auditor integrity, auditor competence, auditor independence and work pressure have a significant influence in a positive direction on red flags, leadership political behavior and internal audit quality through leadership political behavior. Then auditor integrity, auditor competence and auditor independence have a significant influence in a positive direction on internal audit quality. Meanwhile, work pressure does not have a direct effect on internal audit quality, this is because the more work pressure an auditor experiences, the more internal audit quality will decrease. Furthermore, red flags and leadership political behavior have a significant influence in a positive direction on internal audit quality. Auditor integrity and auditor competence do not indirectly influence internal audit quality through red flags. Then auditor independence and work pressure have a significant influence on internal audit quality through red flags.