The Role of Internal Audit Quality to the Sustainability and Success of Microfinance Program

Authors

  • Saikou Gassama Universitas Airlangga
  • Erina Sudaryati Universitas Airlangga

DOI:

https://doi.org/10.22219/mb.v12i01.15642

Keywords:

Internal, Audit, sustainability, microfinance, loan programs

Abstract

Microfinance institutions are the main source of finance for the poor and the women in many country, therefore the sustainability of these companies is a concern, but that cannot be achieved without proper internal control mechanism to detect any attempt frauds that could harm the operations of microfinance institutions. The research will used literature review method by digging into previous researches to see the main courses of the failure of many microfinance institutions. The research found out that most of the microfinance institution failed due to inadequate control in place to detect malfunctions or fraud at the earlier stages that can safeguard the operations of microfinance institutions.

Downloads

Download data is not yet available.

References

BADARA, Muâazu Saidu and Siti Zabedah SAIDIN. 2013. “The Relationship between Audit Experience and Internal Audit Effectiveness in the Public Sector Organizations.” International Journal of Academic Research in Accounting, Finance and Management Sciences 3(3):329–39.

Blumberg, Boris, Donald R. Cooper, and Pamela S. Schindler. 2011. Business Research Methods. London: McGraw-Hill Higher Education.

Coram, Paul, Colin Ferguson, and Robyn Moroney. 2008. “Internal Audit, Alternative Internal Audit Structures and the Level of Misappropriation of Assets Fraud.” Accounting and Finance 48(4):543–59.

Dittenhofer, Mort. 2001. “Internal Auditing Effectiveness: An Expansion of Present Methods.” Managerial Auditing Journal 16(8):443–50.

Getie Mihret, Dessalegn, Kieran James, and Joseph M. Mula. 2010. “Antecedents and Organisational Performance Implications of Internal Audit Effectiveness: Some Propositions and Research Agenda.” Pacific Accounting Review 22(3):224–52.

Hung, Jung-Hua and Hui-Lin Han. 1998. “An Empirical Study on Effectiveness of Internal Auditing for Listed Firms in Taiwan.” Retrieved November 4:2008.

Ibironke, Olukayode Ezekiel and Ndubuisi Ikechi Elewor. 2020. “The Role of Internal Audit and Control on Organizational Objective Achievement.” VII(V):257–64.

Kothari, C. R. 2002. Research Methodology: Method & Techniques.

Muhammed, Amina Ahmed. 2018. “The Role of Internal Auditors in Private and Public Organizations of Jimma Zone Selected Weredas, Ethiopia.” International Journal of Research in Business and Social Science (2147-4478) 6(6):152–68.

Musah, Alhassan, Erasmus Dodzi Gapketor, and Fred Kwesi Anokye. 2019. “Determinants of Internal Audit Effectiveness in State-Owned Enterprises ( SOEs ) in Ghana.” 8(January):52–68.

Mustika, Adhista Cahya. 2015. “Factors Affecting the Internal Audit Effectiveness.” Factors Affecting the Internal Audit Effectiveness 12(2):89–109.

Narkchai, Sutana and Faudziah Hanim Binti Fadzil. 2017. “The Communication Skill on the Performance of Internal Auditors in Thailand Public Limited Company.” International Review of Management and Marketing 7(4):1–5.

Obeng, K. 2016. “Effectiveness of Internal Audit in Micro Financial Institutions: Evidence from Selected Financial Institution in Ghana.” Research Journal of Finance and Accounting 7(12):63–70.

OKARO, S. C., G. O. OKAFOR, I. O. NWANNA, and I. M. IGBINOVIA. 2017. “Empowering the Internal Audit Function for Effective Role in Risk Management. A Study of Micro Finance Banks in Anambra State, South East, Nigeria.” International Journal of Academic Research in Accounting, Finance and Management Sciences 7(3):14–23.

Pavković, Anita, Danijel Mlinarić, and Tanja Dolinar. 2014. “Systemic Risk Governance in Croatian Financial System.” Banks and Bank Systems 9(1):111–19.

Prawitt, Douglas F., Jason L. Smith, and David A. Wood. 2009. “Internal Audit Quality and Earnings Management.” Accounting Review 84(4):1255–80.

Ramachandran Asst Professor, DrJayalakshmy, DrRamaiyer Subramanian, and Ireneo John Kisoka. 2012. “Effectiveness of Internal Audit in Tanzanian Commercial Banks.” British Journal of Arts and Social Sciences 8(I):2046–9578.

Tazilah, Mohd Danial Afiq Bin Khamar and Norhusnaida Binti Che Hussain. 2015. “The Importance of Internal Control in SMEs : Fraud Prevention & Detection.” International Conference on Business, Accounting, Finance, and Economics (February).

The SEEP Network. 2011. “Pocket Guide to the Internal Audit Activity Guide for Boards of Directors of Microfinance Institutions.” (November).

World Economic Forum (WEF), Sirine Mnif, Chiraz Feki, Ines Abdelkafi, Vagan Terziyan, Svitlana Gryshko, Mariia Golovianko, Courtney Krousie, Rostislav Kapeliushnikov, Munich Personal, Repec Archive, L. M. Henk, Hildegunn Kyvik, Economic Policy Analysis, International Affairs, Editorial Board, International Affairs, Werner Smolny, R. G. Pierse, Adelaida Reyes, Joonmo Cho, Jinha Kim, Angel Garcia, Jordi Jaumandreu, Cesar Rodriguez, B. Y. P. Fung, K. T. O'Brien, Shiyong Wang, Jiafu Wan, Di Li, Chunhua Zhang, John Van Reenen, Nitin Sachdeva, Rajat Kumar Obheroi, Abhishek Srivastava, S. K. Nehal, Jose Pedro, Mora Ortiz, Anton Friedl, and Marco Vivarelli. 2018. Title.” Russian Journal of Economics 48(2):123–54.

Downloads

Published

2022-05-23

Issue

Section

Articles