Internal Audit: Its Implications To Good Corporate Governance (GCG) In PT. Telekomunikasi Indonesia

Abstract

The study aims to know the implications of audit internal to good corporate governance. It is known that audit internal plays a vital role in every entity or an organization. Audit internal helps achieve organizational objectives while good corporate governance emphasizes on how performance is monitored and optimized. This paper used descriptive method wherein data were gathered through questionnaires. Research questionnaires were distributed to 20 respondents who were working in Internal Audit Unit of PT. Telekomunikasi Indonesia. Internal audit as the independent variable has four (4) indicators, independence, professional competence, scope of work, and Implementation of audit activities. Good corporate governance as the dependent variable has four (4) indicator, these are, fairness, transparency, accountability, and responsibility. Data gathered were processed and concluded. Based on the result of the research, it is known that internal audit is related to good corporate governance with an r = 0.661, this means that the relationship of both variable is strong and positive. It is also known that audit internal affects good corporate governance with an α = 5%, it is known that it affects significantly. Also, the result shows that tvalue of 3.574 is > ttable value of 1.734, which is means that Ho is
rejected.