A Systematic Literature Review on the Effectiveness of Internal Control and the Quality of Internal Audit in Improving Financial Management Performance at State Legal Entity Universities (PTN BH) in Indonesia
Keywords:
Internal Control Effectiveness, Internal Audit Quality, Financial Management Performance, State Legal Entity Universities (PTN BH), Systematic Literature Review (SLR)Abstract
The purpose of this study is to systematically review existing literature on the effectiveness of internal control and the quality of internal audit in improving the financial management performance of State Legal Entity Universities (PTN BH) in Indonesia. In the context of public sector governance, particularly in higher education institutions, financial management performance is a crucial determinant of institutional accountability and sustainability. This study employs a Systematic Literature Review (SLR) approach by collecting, evaluating, and synthesizing empirical research articles published between 2013 and 2024 from reputable international and national journals. The review process followed PRISMA guidelines to ensure transparency and comprehensiveness in the selection of relevant studies. A total of 35 articles were identified and categorized based on their research focus, methodologies, and key findings. The results show that both internal control effectiveness and internal audit quality significantly influence financial management performance, although various contextual factors such as organizational culture, regulatory environment, and leadership style act as moderating or mediating variables. The study concludes by offering theoretical, practical, and policy implications to improve financial governance in PTN BH, and provides directions for future research in public sector accounting.Downloads
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References
Alzoubi, E. S. S. (2019). Audit quality and earnings management: Evidence from Jordan. Journal of Applied Accounting Research, 20(3), 289–303. https://doi.org/10.1108/JAAR-09-2017-0100
Arena, M., & Azzone, G. (2009). Identifying organizational drivers of internal audit effectiveness. International Journal of Auditing, 13(1), 43–60. https://doi.org/10.1111/j.1099-1123.2008.00392.x
COSO (Committee of Sponsoring Organizations of the Treadway Commission). (2013). Internal Control—Integrated Framework. COSO.
DeFond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58(2-3), 275–326. https://doi.org/10.1016/j.jacceco.2014.09.002
Goodwin-Stewart, J., & Kent, P. (2006). The use of internal audit by Australian companies. Managerial Auditing Journal, 21(1), 81–101. https://doi.org/10.1108/02686900610634775
Hailemariam, S., Kedir, M., & Yimer, A. (2020). The effect of internal control system on organizational performance: Evidence from public universities in Ethiopia. Research Journal of Finance and Accounting, 11(13), 19–31. https://doi.org/10.7176/RJFA/11-13-03
Mihret, D. G., & Grant, B. (2017). The role of internal audit in enterprise risk management: Evidence from the Ethiopian public sector. International Journal of Auditing, 21(3), 285–302. https://doi.org/10.1111/ijau.12097
Prawitt, D. F., Smith, J. L., & Wood, D. A. (2009). Internal audit quality and earnings management. The Accounting Review, 84(4), 1255–1280. https://doi.org/10.2308/accr.2009.84.4.1255
Sarens, G., & De Beelde, I. (2006). Internal auditors’ perception about their role in risk management: A comparison between US and Belgian companies. Managerial Auditing Journal, 21(1), 63–80. https://doi.org/10.1108/02686900610634766
Sun, T., & Rath, S. (2020). Determinants of financial performance in higher education institutions: Evidence from UK universities. Journal of Public Budgeting, Accounting & Financial Management, 32(5), 805–827. https://doi.org/10.1108/JPBAFM-03-2020-0047
Arena, M., & Azzone, G. (2009). Identifying organizational drivers of internal audit effectiveness. International Journal of Auditing, 13(1), 43–60. https://doi.org/10.1111/j.1099-1123.2008.00392.x
COSO (Committee of Sponsoring Organizations of the Treadway Commission). (2013). Internal Control—Integrated Framework. COSO.
DeFond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58(2-3), 275–326. https://doi.org/10.1016/j.jacceco.2014.09.002
Goodwin-Stewart, J., & Kent, P. (2006). The use of internal audit by Australian companies. Managerial Auditing Journal, 21(1), 81–101. https://doi.org/10.1108/02686900610634775
Hailemariam, S., Kedir, M., & Yimer, A. (2020). The effect of internal control system on organizational performance: Evidence from public universities in Ethiopia. Research Journal of Finance and Accounting, 11(13), 19–31. https://doi.org/10.7176/RJFA/11-13-03
Mihret, D. G., & Grant, B. (2017). The role of internal audit in enterprise risk management: Evidence from the Ethiopian public sector. International Journal of Auditing, 21(3), 285–302. https://doi.org/10.1111/ijau.12097
Prawitt, D. F., Smith, J. L., & Wood, D. A. (2009). Internal audit quality and earnings management. The Accounting Review, 84(4), 1255–1280. https://doi.org/10.2308/accr.2009.84.4.1255
Sarens, G., & De Beelde, I. (2006). Internal auditors’ perception about their role in risk management: A comparison between US and Belgian companies. Managerial Auditing Journal, 21(1), 63–80. https://doi.org/10.1108/02686900610634766
Sun, T., & Rath, S. (2020). Determinants of financial performance in higher education institutions: Evidence from UK universities. Journal of Public Budgeting, Accounting & Financial Management, 32(5), 805–827. https://doi.org/10.1108/JPBAFM-03-2020-0047
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Published
2025-07-22
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Articles
How to Cite
A Systematic Literature Review on the Effectiveness of Internal Control and the Quality of Internal Audit in Improving Financial Management Performance at State Legal Entity Universities (PTN BH) in Indonesia. (2025). Proceeding of International Conference on Economics, Technology, Management, Accounting, Education, and Social Science (ICETEA), 1, 84-92. https://conference.unita.ac.id/index.php/icetea/article/view/342
