Model of Successful Risk Based Internal Audit Implementation in Regencies/Cities in North Sumatera

Abstract

Today, internal auditors in regency/city governments don't implement their monitoring function effectively. For example, the result of the examination of the Audit Board of the Republic of Indonesia on the implementation of budget management in City/Regency Governments still found some frauds which weren't detected by internal auditor. It indicates that internal auditors can't assess and detect potential frauds. It's suspected that in performing their duty, internal auditors haven't implemented Risk based internal audit. The present study was performed to examine factors influencing the success of Risk Based internal audit implementation. The present study will develop a model of RBIA Griffin implementation. The research result showed 4 stages which must be performed in regencies/cities for successful RBIA implementation.

Full text

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International Journal of Civil Engineering and Technology (IJCIET)
Volume 9, Issue 9, September 2018, pp. 615627, Article ID: IJCIET_09_09_060
Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=9&IType=9
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
©IAEME Publication Scopus Indexed
MODEL OF SUCCESSFUL RISK BASED
INTERNAL AUDIT IMPLEMENTATION IN
REGENCIES/CITIES IN NORTH SUMATERA
Erlina*
Universitas Sumatera Utara, Medan, Indonesia
Devi Rosyana Putri
Universitas Sumatera Utara, Medan, Indonesia
Ana Sopanah
Universitas Widyagama, Malang, Indonesia
Iskandar Muda
Universitas Sumatera Utara, Medan, Indonesia
*Correspondence Author: erlina@usu.ac.id
ABSTRACT
Today, internal auditors in regency/city governments don’t implement their
monitoring function effectively. For example, the result of the examination of the Audit
Board of the Republic of Indonesia on the implementation of budget management in
City/Regency Governments still found some frauds which weren’t detected by internal
auditor. It indicates that internal auditors can’t assess and detect potential frauds. It’s
suspected that in performing their duty, internal auditors haven’t implemented Risk
based internal audit. The present study was performed to examine factors influencing
the success of Risk Based internal audit implementation. The present study will
develop a model of RBIA Griffin implementation. The research result showed 4 stages
which must be performed in regencies/cities for successful RBIA implementation.
Key words: Fraud, Risk based Internal Audit, role of internal audit function, top
management commitment.
Cite this Article: Erlina, Devi Rosyana Putri, Ana Sopanah and Iskandar Muda,
Model of Successful Risk Based Internal Audit Implementation in Regencies/Cities in
North Sumatera. International Journal of Civil Engineering and Technology, 9(9),
2018, pp. 615-627.
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=9&IType=9

Erlina, Devi Rosyana Putri, Ana Sopanah and Iskandar Muda
http://www.iaeme.com/IJCIET/index.asp 616 editor@iaeme.com
1. INTRODUCTION
Regional financial management is an activity which will affect the improvement of the
welfare and prosperity of the people and nation of Indonesia. To improve performance,
transparency and accountability of the management of state finances, one of the units which
performs audit/check and be responsible for the internal monitoring of the government and the
implementation of local government is internal auditor. The question which is often raised is
whether local internal auditors can perform the audit duties with various obstacles, including
limited auditors with accounting background, lack of training, high transfer of auditors to
other institutions, and limited understanding of superior. Internal auditors of regencies/cities
         
examined by the Audit Board of the Republic of Indonesia, internal auditor reviews the
financial statement. The review process performed by internal auditor is expected to reduce
error and detect fraud by government official. However, in reality, there are still many errors
 
detect potential fraud. The implementation of risk-based audit is to reduce conflict of interest
in local governments. Agency relations in the government are between (1) executive and
legislative, and (2) Head of region and head of regional organization. In conflict between
executive and legislative, the executive (government) is agent   
representatives in parliament) is principal. Conflict usually occurs when preparing budget.
Before preparing Regional Budget (APBD), the executive and legislative first agree on the
direction and general policy, as well as budget priorities, to be the guideline in the preparation
of the Regional Budget. The executive makes APBD draft which is then submitted to the
legislative to be studied and discuss before being established as regional regulation (Perda). In
              

The agency problem in the executive is the tendency to maximize personal and group
interests in making or preparing APBD due to information advantage (information
asymmetry). As a result, the executive tends to perform . It happens because
the executive will secure their positions in the government before the legislative and people,
perhaps even for the next local election. The agency problem in the legislative (board
members) happens from two perspectives, i.e. as principal of executive and as agent with
people (constituents). The agency problem in the principal perspectiv
       discretionary power. The legislative tends to
           
maintain the sustainability and improve of image of politicians (board members) because the
budget tends to be targetable proposals whose results are clearly visible in the society. As a
result, the development tends to happen in the electoral areas of powerful politicians in the
legislative. There has been change of emphasize in internal audit in the past years from

    risk based internal audit performed by internal auditors is
focused on the parameters of risk assessment which is formulated on risk based audit plan.
Based on the risk assessment, risk matrix is found, helping internal auditor to prepare risk
audit matrix. The benefits internal auditor if they use risk based audit approach include higher
        
         
Audit in performing monitoring duty. Based on preliminary observation, most internal
  Every year,
inspectorate should prepare risk based audit plan which establishes priority of internal audit which is
consistent with organizational purpose and priority. The audit planning process ensures that all
activities of internal audit are relevant, timely, and strategic to support the achievement of

Model of Successful Risk Based Internal Audit Implementation in Regencies/Cities in North Sumatera
http://www.iaeme.com/IJCIET/index.asp 617 editor@iaeme.com
r risk based planning process is identification of
audit environment. This research examined the effect of the role of internal auditor,
commitment of top management, continuing professional development, communication and
policy framework on successful implementation of risk based internal audit in regencies/cities
in North Sumatera Province
2. LITERATURE REVIEW
2.1. Risk Based Internal Audit
The shift of auditing approach from system based audit to process based audit and currently to
risk based internal audit leads many researchers to study Risk Based Internal Audit. They
include Eshikhati (2012), Kirogo et al., (2014), Nyarombe et al., (2015). Eshikhati study
factors which affect risk based audit implementation of the public sector in Kenya.
 study is focused on five determinants: Internal Audit Function, Commitment of
Top Management, Training, Policy Framework and Communication. Risk based internal audit
(RBIA) is found to be a complex process which lasts several years. The RBIA paradigm
move
achievement of organizational purpose. Focus on risk make auditors have the same language
e easier to achieve
because the risk are identified well and the reliability of the handling has been examined by
internal audit process. Although auditors are focused on risks, management still requires
assistance in control. However, the priority is on control which has direct impact on achieving
the purposes. In fact, internal auditor is demanded to have extra ability to relate control with
overall organizational purposes and risks. Therefore, through RBIA, the perspective of
internal auditors is broader and more comprehensive. Griffiths (2006) mentions 3 stages in
implementing RBIA, i.e.:
 Assessing maturity level of enterprise risk management process
 Making audit plan
 Performing individual assurance audit
2.2. Determinant of Successful RBIA Implementation
2.2.1. The Role of Internal Audit Function
For many people, the role of internal audit is a mystery. This is indicated by the history and presence
of internal audit function di local governments. On one hand, internal audit function helps head of
region to monitor the implementation of budget, but on the other hand, internal auditor seems to have
no independence (Erlina and Muda, 2018) . If a head of region performs fraud in managing the local
finances, the inspectorate has little function in giving warning. Today, the function has shifted its role
to assess and advices risk management process, control and management. Changes of name and
function are often misunderstood and cause confusion on the role and function of internal auditor. As a
result of changes of the needs of organization, technology and organizational activity and system, the
services expected from auditor internal have changed over the years from emphasis on traditional
compliance audit where independence is the main paradigm, to role to add value in which partnership
with management is given bigger significance (Abdolmohammadi et al., 2006). Audit is still viewed
with derision and suspicion and is viewed in all levels as an inevitable evil. The best audit internal

management and staffs in all levels change and internal audit is given status as a supportive
management tools, its finding, contribution are acknowledged and supported by senior management:

management of every organization (Kumar, 2012).

Erlina, Devi Rosyana Putri, Ana Sopanah and Iskandar Muda
http://www.iaeme.com/IJCIET/index.asp 618 editor@iaeme.com
2.2.2. Commitment of Top Management
The main requirement for success in changing approach to risk based internal audit approach is strong
and active leadership support ad better management structure. Agreement and active involvement of
top management in internal audit, senior management (head of organization), audit staff, accounting
staff and senior operational management should make a climate which encourages independent
evaluation on the effectiveness of risk management, control and governance (Gansberghe, 2005).
Eisenstat (1993) studies West Australia Public Services to understand the importance of commitment
of management by studying employee performance to understand the relation between employee
attitude on functional flexibility. There are certain phases in developing commitment. They include
scientific stage in which management motivates workers, human relation phase in which corporate
treats employees fairly and well, and phase which emphasizes principle in which the managers utilize
ination better, in effect in RBA implementation. Top management
is involved in designing information system for organization where they influence the
environmental variable which is most likely to get attention in organization (Sandelands, 1994).
 lso required to give accurate and timely feedback on performance and organizational
performance, individual business unit in organization, which auditor uses to provide certainty.
2.2.3. Continuing Professional Development
Broad definition of training covers all efforts made in or out of organization to improve employee and
            
definition captures important parameters, Skills Assessment Report (2002) also specifically
emphasizes needs to differentiate formal and informal training approaches. Kimwele (2011) notes that
in public sector, there is shortage of generally skillful labors, and efforts to improve skills in
government are often frustrated by migration of labors to private sector with higher pay when workers
receive sufficient skills. In corporate sector, risk management and risk based internal audit are
  
in public sector a
Abdullah and Al-Araj (2011) study audit of traditional business audit history in Jordan to
implement the audit approach which is currently being used by auditors in Jordan and find lack of
sufficient training on RBIA implementation, inability to evaluate business risk objectively, lack of
professional efficiency of auditors along with no professional standard which regulates RBIA
approach. They conclude that continuing professional development is very necessary because with
RBIA approach, the role of internal auditor is as consultant in preliminary stage. Mihret and
Woldeyohannis (2007) conclude that employee rotation in internal audit unit leads to the role of value
added of audit internal. Interview result showed that as a result of high staff turnover, the average
work period of auditors is low. Auditors leave department by transfer to other departments in the
company. On the other hand, transfer to audit internal department is insignificant. It leads to more new
member in the department, having poor impact on potential value added of internal audit. Moreover,
the number of staffs is insufficient, considering the massive size and complexity of corporate
operation. Efforts to ensure provision of suitable continuing professional development, e.g.
            
auditors to improve their capability is very low (Lindow and Race, 2002). Due to complex and
dynamic characters of the business, sustainable and focused training is very important to have internal
audit result by giving value added.
2.2.4. Policy Framework
Indonesian government has made efforts to improve the capacity of auditors using STAR-
SDP to reinforce the capacity of public audit sector. The result is significant. However, there
are still issues on finances such as embezzlements and corruptions, weak financial
management in central and local governments, and lack of public participation in monitoring
public expenses public           
efforts to keep improving public audit sector and public financial management are still
required to improve good governance and positive impact for poverty reduction. Bureaucratic
reformation is a bureaucratic effort, i.e. process toward prototypical bureaucratic

Model of Successful Risk Based Internal Audit Implementation in Regencies/Cities in North Sumatera
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characteristics with the main purpose of realizing bureaucracy which acts professionally for
public, i.e. serving the society (public servant) well. Reformation of public sector
management has been a "global" trend since early 1980s (Pollitt and Bouckaert, 2004), however
"local" responses (i.e. state level) have very different results. There seems to be differences between
what is expected from various reformed laws and the results of reformed public sector financial
management.
2.2.5. Communication Process
Communication aspect should be emphasized in implementing risk based audit process. Although
researches show that communication is the key factor of success in the adopted risk based audit,
communication with employees on issues related with RBIA which are often delayed. In this context,
many organizations face the challenge of lack of two way institution, possible communication and
submission of questions from employees on issues on formulated strategies. Poor communication
ability is also dangerous because employees have no information on new requirements, tasks and
activities to be performed by impacted employees. Next, the reason behind changing situation is given.
           
development to all levels in a timely manner. The method of presenting strategy to employees strongly
affects their acceptance of it. To end the critical situation, an integrated communication plan must be

selected to be implemented (Rapa and Kauffman, 2005).
2.3. Hypothesis
The research was quantitative. The research team tried to use quantitative approach in which suspected
factors were hypothesized from previous studies. Based on previous description, the research
framework is as follows:
Figure 1 Research Framework
Based on the descriptions of background and theoretical review, the research team tried to
            
professional development, training, policy framework and communication affect the success of risk

3. RESEARCH METHOD
The population of this research was all internal auditors in Deli Serdang Regency, Dairi
Regency, Medan City and Binjai City. The present study used primary data. The test was
performed using PLS application. The independent variables in the present study were the
role of internal audit (X1), Commitment of Top Management (X2), Continuing professional
development (X3), Policy Framework (X4) and Communication (X5). The dependent variable
was successful RBIA implementation. The establishment of a path diagram in the PLS-SEM
process is a visualization of the conceptual framework of research so that it is easier to
understand and learn. Before the questionnaire was disseminated to the research respondents
the researchers tested the validity and reliability of the instrument against the questionnaire.

Erlina, Devi Rosyana Putri, Ana Sopanah and Iskandar Muda
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The validity test used is the internal validity test using the "product moment" technique
(Lutfie et al., 2016; Lubis et al., 2016; Gusnardi et al. 2017; Achmad et al., 2017; Badaruddin
et al., 2017; Syahyunan et al., 2017; Muda, 2017 & Erwin et al., 2018). Based on the results
of the analysis shows that the value of the correlation coefficient of each question item
presented has a coefficient value (rxy) that is greater than the critical correlation coefficient.
This shows that each item contained in all questions can be declared valid and feasible to be
used as a reference for measuring variables in this research.
While the reliability test applied to the instrument in this study is an internal consistency
test, by testing the instrument, then the data obtained is analyzed by Cronbach's Alpha
technique. Based on the results of the analysis shows that the Alpha Cronbach coefficient
                    
questions presented is reliable (reliable) to use. Besides this path diagram will be tested
through goodness of fit to see the suitability of the model with the existing reality
(Sirojuzilam et al., 2016; Hutagalung et al., 2017; Muda, 2017; Erlina and Muda, 2018; Eriadi
et al., 2018; Sari et al., 2018; Muda, & Nurlina, 2018 and Muda & Naibaho, 2018; Azlina et
al., 2017; Sadalia et al., 2017; Dalimunthe et al., 2017 and Muda et al., 2018). Analysis of the
free (exogenous) influence on the dependent variable can be seen in the Path Coefficient. The
construct reliability test in PLS can use two methods, namely cronbach's alpha and composite
reliability. Composite Reliability is a reliability test that measures the real value of a variable
while cronbach's alpha measures the lower bound of the reliability of a variable. In this study
the reliability value seen came from Composite Reability, while Cronbach's Alpha was not
used because Composite Reliability was better in estimating the internal consistency of a
construct. The determination coefficient is used to see the ability of the model or the ability of
the independent variable to explain the variance of the data on the dependent variable. The
criteria used in assessing the coefficient of determination are 0.67, 0.33 and 0.19, each of
which represents an assessment of a model that can explain well, moderate, and weak (Muda
and Dharsuky, 2015 & 2016; Lubis et al., 2016; Tarmizi et al., 2016; Sirojuzilam et al., 2016
& 2017; Muda and Hutapea, 2018 & Pohan et al., 2018). R2 results present the amount of
variance of the construct described by the model.
4. RESULT AND DISCUSSION
4.1. Result
The data obtained in this research was analyzed using Partial Least Square (PLS) approach.
The outer-model test began by estimating or predicting the parameters (Dalimunthe et al.,
2016; Muda and Dharsuky, 2016; Muda et al., 2017; Yahya et al., 2107; Sadalia et al., 2018;
Erlina and Muda, 2018 and Muda et al., 2018). The result of PLS algorithm calculation is
below:
Sources : PLS results (2018).
Figure 2 Display of the PLS Output

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Based on the results of the outer-model test, which included the convergent validity test,
the discriminant validity test, and the reliability test, it can be concluded that all indicators
             
framework ((Dalimunthe et al., 2016; Muda and Dharsuky, 2016; Muda et al., 2017; Yahya
et al., 2107; Sadalia et al., 2018; Erlina and Muda, 2018 and Muda et al., 2018; Muda, 2017,
Erlina et al., 2017 and Sadalia et al., 2018). The structural model in PLS was evaluated using
R-square for the dependent variable and the value of the coefficient for the independent
variables whose significance were then assessed based on the t-statistic value of each path
(Dalimunthe et al., 2016; Lubis et al., 2016; Handoko et al., 2107; Hasan et al., 2107; Erlina
et al., 2107; Syahyunan et al., 2017; Situmorang et al., 2018; Muda et al., 2017). The PLS
results in assessing the value of the path coefficient and R-square can be seen in Figure 2 and
Table 1.
Table 1 Value of tStatistics
Exogenous
Path Analysis
t Statistic
p Values
Conclusion
Role of Internal Auditor (X1)
0.357
3,460
0,001
Accepted
Commitment of Top Management (X2)
0.346
3.288
0,001
Accepted
Policy Framework (X3)
0.098
1,662
0,097
Rejected
Training (X4)
0.193
3,194
0,001
Accepted
Communication Process (X5)
0.233
3,319
0.001
Accepted
Sources : PLS results (2018).
Based on the test results in T         
Commitment of Top, Training and Communication Process had positive and significant
effects Management on Risk Based Internal Auditor implementation. Policy Framework had
effect, but insignificant at 5% significance. However, at 10% significance, policy framework
had positive and significant effect on Risk based Internal Audit implementation.
4.2. Discussion
Efforts to increase RBIA adoption, respondents recommended reinforcing the monitoring of
auditor performance, improving quality of monitoring across OPD, enhancing education for
audit practitioners, introducing new audit standard, and educating people on audit function
and auditor profession. Most respondents talked about giving comprehension to users as one
        derstanding and reducing difference in
perception. Overall, the main solution was enhancing the independence of auditors and
responsibility of auditors using more serious punishments to reduce government reporting
scandals, thus opening the way to improve audit quality. The research result by quantitative
approach concludes that the role of internal auditor, commitment of top management, policy
framework, training and communication process had positive and significant effect on
successful RBIA implementation.
4.2.1. The Effect of Role of Internal Auditor on RBIA Implementation
Respondents often faced challenges and misunderstandings on how auditors determined some
audit procedures during audit. Respondents felt that they had no independence in performing
their duties, had difficulty performing more focused monitoring on an activity they deem
having high risk of error and fraud. OPD often thought that inspectorate was picking their
faults when they tried to detect illegal action and/or fraud. On one hand, users of audit report
had high expectations for the inspectorate in finding and handling audit findings. The
        
felt that their role in performing their function as internal audit was limited. Great critiques

Erlina, Devi Rosyana Putri, Ana Sopanah and Iskandar Muda
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and litigation to the inspectorate as the inspection official showed discrepancy between public
expectation on auditors and auditor performance experienced by organization.
4.2.2. The Effect of Commitment of Top Management on RBIA Implementation
The commitment of top management was considered important in all local organizations for
effective RBA implementation. Employees at all organizational levels felt the top
 recommended
internalizing the principles of strategic risk management so that all employees become more
effective.
4.2.3. The Effect of Policy Framework on RBIA Implementation
             udit
implementation. It showed that 4 other factors affected successful RBIA implementation.
According to them, policy framework was necessary, but they argues that the existing Policy
Framework without the commitment of top management and quality resources, whether
           
internal auditor should be reinforces and good communication also greatly supported
successful Risk Based Internal Auditor implementation.
4.2.4. The Effect of Training on RBIA Implementation
Inappropriate training could lead to poor commitment to appropriate work procedure, poor
monitoring and demoralized officers. It could mean that the services provided by organization
were consistent with the standard and therefore required reform. Managers at every
organizational level were responsible to ensure that employees had required skills for the job.
Managerial duties included giving effective training to team members on job policies and
procedures, and existing standard and regulations, as well as recognizing needs for skill-based

4.2.5. The Effect of Communication Process on RBIA Implementation
The respondents stated that evidence of communication process between internal auditors and
top managements in Regional organizations was poor, and so was communication between
    
about the auditors when they performed audit. If good communication is developed, the steps
offered by experts in implementing risk based audit will run smoothly. Management team
often had limited understanding on communication dynamics in their organization. It could
lead to distrustful climate, with the energy focused on solving internal problems. They
suggested that the key to develop good communication system was manager who had accurate
view on how well they and others actually communicated through training.
5. CONCLUSIONS AND SUGGESTION
5.1. Conclusion
            
examination of Local Government Financial Statement (LKPD). Poor local financial
management in Indonesia also can be seen in numerous corruption cases. In Indonesia today,
corruption eradication is a very crucial and important focus. In fact, being free from
corruption is a benchmark of successful government of a country. Therefore, to create healthy
and good government, risk management should be applied by performing audit by auditors, in
this case the auditors were internal auditors. Risk based internal audit approach is an
alternative for audit function to be effective and efficient. Based on the analysis of research
data, the following research result can be concluded:

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 Level of understanding of auditees and auditors on risk management and Risk Based Internal
Auditor was relatively poor.
 There were 4 dominant factors which affected successful Risk Based Internal Audit
implementation in Local Governments, i.e. (1) Role of Internal Auditor, (2) Organizational
Commitment, (3) Communication Process and (3) Training.
            
implementation.
5.2. Suggestion
Based on the research result, the research team from the Center of Excellence of the Faculty
of Economy and Business of Universitas Suamtera Utara offers 4 stages which must be
performed for successful Risk Based Internal Auditor implementation in regencies/cities in
North Sumatera. The stages were developed from the stages by David Griffiths (2006). The
Center of Excellence of the Faculty of Economy of Universitas Sumatera Utara offers 4 stages
in implementing Risk Based Internal Audit. The stages are:
 Preparing Quality Human Resources, Reinforcing the Role of Internal Auditor, Commitment
of Top Management, Good Communication Process
 Assessing the maturity of enterprise risk management process
 Making audit plan
 Performing individual assurance audit.
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[25] Erwin, K., Abubakar, E., Muda, I. (2018). The relationship of lending, funding, capital,
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[27] Gusnardi, Riadi, R.M., and Muda, I. (2016). Competency mapping and analysis of
students competency based on economics subject national examination and its alternative
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[28] Handoko, B. Sunaryo & Muda, I. (2017). Difference Analysis of Consumer Perception of
Motorcycle Product Quality. International Journal of Economic Research. 14(12). 363-
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[29] Hasan, A, Gusnardi & Muda, I. (2017). Analysis of Taxpayers and Understanding
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[30] Hutagalung, B.; Dalimunthe, D.M.J, R., Pambudi, A.Q. Hutagalung & Muda, I. (2017).
         
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[31] Lubis, A., Rustam and Muda, I. (2016). Factors Affecting The Cost of Agency of Village
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[32] Lubis, A.,Torong, Z.B., and Muda, I. (2016). The urgency of implementing balanced
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[33] Lubis, A.F.,Lubis,T.A.and Muda, I. (2016). The role of Enterprise Resource Plan (ERP)
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[34] Lutfi, M.,Nazwar, C., and Muda, I (2016). Effects of investment opportunity set, company
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[35] Marhayanie, M. Ismail and Muda, I, (2017). Impact of The Online Car Rental Service
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[36] Muda, I and A. A. F. Hutapea. (2018). Influence of capital expenditure and income
original region to the income per capita in Indonesia. IOP Conference Series: Earth and
Environmental Science. 2018. 126 doi:10.1088/1755-1315/126/1/012065.
[37] Muda, I and A.Dharsuky, (2016). Impact of Capital Investments and Cash Dividend
Policy on Regional Development Bank PT. Bank Sumut to the District Own Source
Revenue and Economic Growth. International Journal of Applied Business and Economic
Research, 14(11). 7863-7880.
[38] Muda, I & A.Dharsuky. (2015). Impact of Region Financial Information System Quality,
Role Ambiguity And Training on Precision of Financial Statement of Local Government
Presentation. International Journal of Applied Business and Economic Research, 13(6).
4283-4304.
[39] Muda, I, and Erlina, (2018). Performance Appraisal of Government Internal Supervisory
Apparatus in Implementation of Compliance Audit, International Journal of Civil
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[40] Muda, I, D.Y.Wardani, Erlina, A.Maksum, A. F.Lubis & R. Bukit. (2017). The Influence
of Human Resources Competency & The Use of Information Technology on The Quality
of Local Government Financial Report with Regional Accounting System as an
Intervening. Journal of Theoretical & Applied Information Technology. 95(19). 1432-
1451.
[41] Muda, I, Dharsuky. A., Siregar, H.S., & Sadalia, I. (2017). Combined loading and Cross-
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[42] Muda, I, Erlina, I.Yahya and A.A.Nasution, (2018). Performance Audit and Balanced
Scorecard Perspective, International Journal of Civil Engineering and Technology. 9(5).
13211333.
[43] Muda, I, F Roosmawati, H S Siregar, Ramli, H.Manurung & T.Banuas. (2018).
Performance Measurement Analysis of Palm Cooperative Cooperation with Using
Balanced Scorecard. IOP Conference Series. 288. doi:10.1088/1757-899X/288/1/012081.
[44] Muda, I, M. Ismail & Marhayanie. (2017). Impact Allocation Capital Expenditure on The
Improvement of the Local Government Assets and Effect on Local Revenue
Sustainability. International Journal of Economic Perspectives. 11(2). 151-164.

Erlina, Devi Rosyana Putri, Ana Sopanah and Iskandar Muda
http://www.iaeme.com/IJCIET/index.asp 626 editor@iaeme.com
[45] Muda, I, M.Sihombing, E.Jumilawati and A. Dharsuky. (2016). Critical Success Factors
Downstream Palm Oil Based Small And Medium Enterprises. International Journal of
Economic Research. 13(8). 3531-3538.
[46] Muda, I, M.Sihombing, E.Jumilawati and A.Dharsuky. (2017). Factors Affecting The
Success of Local Innovation Systems With Government Programs As Moderators.
International Journal of Economic Research.14(16). 272-289.
[47] Muda, I, Rahmanta, Marhayanie and A.S Putra. (2018). Institutional Fishermen Economic
Development Models and Banking Support in the Development of the Innovation System
of Fisheries and Marine Area in North Sumatera. IOP Conference Series:Materials
Science and Engineering. 288. doi:10.1088/1757-899X/288/1/012082.
[48] Muda, I, Rahmanta, S. Adi and Marhayanie. (2017). The Role of Working Capital,
         
International Journal of Economic Research. 14(16). 291-302.
[49] Muda, I,, H S Siregar, S A Sembiring, Ramli, H.Manurung and Z.Zein. (2018). Economic
Value of Palm Plantation in North Sumatera and Contribution to Product Domestic
Regional Bruto. IOP Conference Series : Materials Science and Engineering. 288. doi:
10.1088/1757-899X/288/1/012080.
[50] Muda, I., & R.Naibaho (2018). Variables influencing allocation of capital expenditure in
Indonesia. IOP Conference Series: Earth and Environmental Science. 126.
doi:10.1088/1755-1315/126/1/012066.
[51] Muda, I., & A. N. Hasibuan. (2018). Public Discovery of the Concept of Time Value of
Money with Economic Value of Time. Emerald Reach Proceedings Series. 1.255261.
DOI 10.1108/978-1-78756-793-1-00050.
[52] Muda, I., & Nurlina. (2018). Influence of Manufacture of Textiles, Clothing and Leather
and Manufacture of Paper, Printing and Publishing to The Economic Growth. Emerald
Reach Proceedings Series. 1. 105111. DOI 10.1108/978-1-78756-793-1-00048.
[53] Muda, I., (2017). The Effect of Allocation of Dividend of the Regional Government-
Owned Enterprises and the Empowerment Efforts on the Revenue of Regional
Government: The Case of Indonesia. European Research Studies Journal. XX(3A). 223-
246.
[54] Muda, I., (2017). The Effect of Supervisory Board Cross-Membership and Supervisory

Evidence From Indonesia. European Research Studies Journal. XX(3A). 702-716.
[55] Muda, I., and A. H. Harahap, Erlina, S.Ginting, A. Maksum & E.Abubakar (2018).
Factors of quality of financial report of local government in Indonesia. IOP Conference
Series: Earth and Environmental Science. 126 doi:10.1088/1755-1315/126/1/012067.
[56] Muda, I., and Windari. (2018). Dimension of an Islamic Model Value on the Existence of
Syariah Waltmart. Emerald Reach Proceedings Series. 1. 321326. DOI 10.1108/978-1-
78756-793-1-00051.
[57] Muda, I., Panjaitan, S.R, Erlina, S. Ginting, A. Maksum and E. Abubakar. (2018). Model
application of Murabahah financing acknowledgement statement of Sharia accounting
standard No 59 Year 2002. IOP Conference Series: Earth and Environmental Science.
126 doi:10.1088/1755-1315/126/1/012071.
[58]
Muda, I., Sidauruk, S.H., Siregar, H.S., Nurzaimah. (2018). The effect of corporate social
    
random effects model approaches. QualityAccess to Success. 19(165). 79-90.
[59] Muda, I; M. Weldi; Siregar, H.S, & Indra,N. (2018). The Analysis of Effects of Good
Corporate Governance on Earnings Management in Indonesia with Panel Data Approach.
Iranian Economic Review. 21(4). 657-669.
[60] Nasir, A.Y.M.Basri, Kamaliah & Muda, I. (2017).Effectiveness of Potential Tax Region
as the Real Local Revenue Sources.International Journal of Economic Research.
14(12).313-324.

Model of Successful Risk Based Internal Audit Implementation in Regencies/Cities in North Sumatera
http://www.iaeme.com/IJCIET/index.asp 627 editor@iaeme.com
[61] Nurlina & Muda, I. (2017). The Analysis of The Effects of Capital Expenditure and
Human Development Index on Economic Growth and Poverty. International Journal of
Economic Research. 14(16). 395-409.
[62] Nurzaimah, Rasdianto &Muda, I. (2016). The skills and understanding of rural enterprise
management of the preparation of financial statements using Financial Accounting
Standards financial statement on the Entities without Public Accountability framework on
the implementation of village administration law. International Journal of Applied
Business and Economic Research.14(11).7417-7429.
[63] Pohan.,N., Badaruddin., R.F Dalimunthe., A. Purwoko., & Muda, I., (2018). The Effects
of Human Resource Development and Institutional Arrangements on Performance,
Service Quality and Area Development. QualityAccess to Success. 19(163).94-102.
[64] Sadalia, Isfenti, M. H. Kautsar, N. Irawati and I, Muda. (2018). Analysis of the efficiency
performance of Sharia and conventional banks using stochastic frontier analysis. Banks
and Bank Systems.13(2), 27-38. doi: 10.21511/bbs.13(2).2018.03
[65] Sadalia, Isfenti. N.A.B.Rahamani & Muda, I. (2017). The Significance of Internet Based
      International Journal of
Economic Research.14(12). 337-346.
[66] Sari, Maya; A.F. Lubis; A.Maksum; P.Lumbanraja & I. Muda. (2018). The Influence of
 and Internal Control to Corporate Governance and Its Impact on
State-Owned Enterprises Corporate Performance, Journal of Applied Economic Sciences.
4(58). 562575.
[67] Sirojuzilam, Hakim, S., and Muda, I. (2016). Identification of factors of failure of Barisan
Mountains Agropolitan area development.International Journal of Economic Research.
13(5). 2163-2175.
[68] Sihombing, M, Muda, I, E.Jumilawati & A.Dharsuky. (2017). Factors Affecting The
Success of Local Innovation Systems with Government Programs As Moderators.
International Journal of Economic Research. 14(21). 272-289.
[69] Sirojuzilam, Hakim, S., and Muda, I. (2017). Effect of Private Collaborative as a
Moderation of Success of Agropolitan Program. International Journal of Economic
Research. 14(16). 304-315.
[70] Situmorang, S.H, E.S Rini & Muda, I. (2017). Customer Experience, Net Emotional Value
and Net Promoter Score on Muslim Middle Class Women . International Journal of
Economic Research. 14(20). 269-283.
[71] Syahyunan, Muda, I, Siregar, H.S, Sadalia, I. & Chandra, G. (2017). The Effect of Learner
Index and Income Diversification on The General Bank Stability. Banks and Bank
Systems. 12(4). 171-184.
[72] Tarmizi, H.B.,Daulay, M and Muda, I. (2016). The influence of population growth,
economic growth and construction cost index on the local revenue of tax on acquisition of
land and building after the implementation of law no. 28 of 2009. International Journal of
Economic Research. 13(5).2285-2295.
[73] Tarmizi, HB., Daulay, M., and Muda, I. (2017). Impact of The Economic Growth and
Acquisition of Land to The Construction Cost Index.IOP Conference Series : Materials
Science and Engineering. 180. doi: 10.1088/1757-899X/180/1/012004.
[74] Yahya, I, Torong, Z.B., and Muda, I. (2017). Influence Behavior in Legislature Budget
Development of Regions. International Journal of Economic Research. 14(8). 147-159.