INTERNAL AUDITING: CAN IT PREVENT THE HAPPENING OF FRAUD TO A BETTER CONTROL ARRANGE ORGANISATION

Abstract

This research has a purpose to understand the role of internal audit which is done by internal auditor in a try to prevent fraud in control-arrangement organisation of governmental region. This research method that is used is heuristic case study on 5 region government in the whole Lombok Island which is used an object in this research. By using the key informant of 20 auditor that is working on inspektorat office in each region (4 auditors in each 1 environment of region government), found that the internal auditing activity is still pragmatic, the running of internal audit capability model (IA-CM) that support internal auditing activity is still not yet run optimally. This thing is caused by the competency of internal auditor that is lacking, commitment and independency in internal auditing activity is low, and also the supporting facilities is lacking, include the limited budget and time in the running of internal auditing activity. All of the cause make the internal auditing activity is still not yet giving a plus point for the organization.