PERAN AUDIT INTERNAL DALAM PENERAPAN GOOD CORPORATE GOVERNANCE PADA BADAN USAHA MILIK NEGARA PROVINSI JAWA TENGAH

Abstract

The rapid economic and business development affects business actors to enhance their awareness to manage the business
by implementing Good Corporate Governance (GCG). The implementation is aimed to avoid deceitfulness that endangers
company’s assets. GCG becomes a key of success for a company to grow and earn profit in a long term, so it can win
global competitiveness. The implementation of GCG in BUMN is not easy. So, it needs more independent and professional
management to do its tasks. The role of independent internal auditors is important in implementing GCG. The internal
audits are required to provide information on sufficiency and affectivity of company’s internal control. An internal auditor
must be one who has competency in finance because his role is to watch managerial activities. Besides knowledge on
auditing, an auditor is expected to have knowledge on audited substance. Therefore, the competency of internal auditors
are needed to bridge the needs of Commissioner Board on auditing roles and internal controls with constraints absorption
of technical problems in accounting, auditing, and internal control. The result of this research showed that most BUMNs in
banking sector in Central Java have implemented GCG. The internal audits are in line with Commissioner Board, if so the
Board makes mistakes, it will be easily detected.
Key Word : Internal audit, Good Corporate Government