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The focus of internal auditing has shifted from accounting to more management-related areas. Internal auditing, which prioritized the correctness of financial concerns, was linked to independent accounting specialists prior to the 1930s. Nonetheless, internal auditing has developed into a distinct field with a wider focus over time (Sawyer, Dittenhofer, & Scheiner, 2005). The modern era of internal auditing began in 1941 with the establishment of The Institute of Internal Auditors (IIA) in the United States. These days, internal auditors assess every facet of a business’ operations, matching the scope of external auditors in their work (Moeller, 2016).
In July 1999, the Institute of Internal Auditors approved the following definition, which is still in use today (The Institute of Internal Auditors, n.d.) ” Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”
- Is it necessary for every company or organization to have an internal audit unit? This depends on laws and regulations in each country. Indonesia still lacks regulations requiring all businesses to have internal audit departments. However, there are two (2) laws that mandate or encourage the relevant company to have an internal audit unit:
Otoritas Jasa Keuangan Peraturan (POJK) No. 56 of 2015
This regulation requires public companies, such as emitters, to have an internal audit unit. Additionally, POJK in this case discusses the preparation and execution of internal audit procedures (Otoritas Jasa Keuangan). - Pedoman Umum Tata Kelola Perusahaan Indonesia (PUGKI) 2021, which is overseen by the National Committee on Governance, requires businesses to have an independent and efficient internal audit function.
Professional certification is very important since it makes it official that a person is competent in a particular field. Internal auditors with high levels of expertise and professionalism are crucial for businesses to maintain a successful corporate culture. The Institute of Internal Auditors (IIA) has recognized the Certified Internal Auditor (CIA) as one of the top certifications in the field of internal auditing conducted internationally. In addition, qualified internal auditors (QIAs) are also available in Indonesia. The QIA certification is obtained through the YPIA, or Yayasan Pendidikan Internal Audit, which is the gateway to the Dewan Sertifikasi Qualified Internal Auditor (DS-QIA).
