A PROPOSED-INTERNAL AUDIT MODEL FOR NGO IN INDONESIA (STUDY ON CHILDREN DEVELOPMENT CENTER–SALATIGA CLUSTER)

Abstract

Children Development Center has to present an audited financial report to both the Compassion Indonesia Foundation and the partner church as an accountability form of program’s fund spending. But, the internal auditors who are assigned to maintain its reliability face problems of unstandardized internal audit process. Thus the study aims to develop a standardized internal audit model.

Research and development approach has been employed in this study. The survey of 15 centers has been a basis to describe the strength and weakness of the current internal audit. It concluded a need analysis of internal audit model. A generic model had been developed consists of the framework and the process model of internal audit. The framework is a scope of internal audit work, while the process model determines input, process, and output of standardized internal audit.

The study has concluded that unstandardized internal audit has made many discrepancies. They could be reduced or eliminated by running the standardization model of internal audit. Potential future research is to develop the further model in detailed modules which will be ready to apply in the centers. Moreover, other future research is to develop the model for another NGO which has a different business process from the center