Overview

Original Research

THE ROLE OF INTERNAL AUDIT ON INTERNAL CONTROL IN BANKING LENDING

K. AMBARWATI 1, BUDI SANTOSO 2, and SITI MALIKHATUN BADRIYAH 3.

Vol 18, No 10 ( 2023 )   |  DOI: 10.5281/zenodo.10071217   |   Author Affiliation: Doctoral Law Program, Diponegoro University, Jl. Prof. Soedarto, SH., Tembalang, Semarang 1; Lecturer in Doctor Law Program, Faculty of Law, Diponegoro University, Jl. Prof. Soedarto, SH., Tembalang, Semarang 2,3.   |   Licensing: CC 4.0   |   Pg no: 1753-1763   |   Published on: 28-10-2023

Abstract

This study aims to analyze the role of internal audit in internal control in providing bank credit. The research method used is qualitative. The results showed that internal audit is a monitoring element of the internal control structure in an organization, which is designed to monitor the effectiveness of elements of the internal control structure. The purpose of the audit carried out by the internal auditor is to assist all company leaders (management) in carrying out their responsibilities by providing analysis, assessment, suggestions and comments regarding the activities they examine. Seven main principles of internal control, namely: 1) Clear assignment of responsibilities, 2) Administration of company records, 3) Insurance of company assets and employees, 3) Separation of equipment and storage of assets, 4) Separation of responsibilities for related transactions, 5) Implementation independent inspection, 6) Use of mechanical equipment whenever possible.

Keywords

Role, Internal Auditor, Internal Control, Credit, Banking.