The Influence of the Management Control System on Good University Governance with the Internal Auditor's Role as Mediation

Abstract

The objective of this study is to prove the role of the Internal Control System (SPM) on Good University Governance (GUG) with the internal auditor's role as mediation in the context of open and distance higher education (PTTJJ). The study assessed the effectiveness of SPM within the COSO framework (Committee of Sponsoring Organizations of the Treadway Commission); GUG through indicators of audit findings, and the role of internal auditors through indicators of internal auditor competencies. The results of the test on 138 samples by using structural equation modeling (SEM) showed that the indicators of each variable valid and reliable. This study proves the effectiveness of SPM affects the GUG, but the internal auditor's role is not significant. Partial test results, only the auditor competence, either directly or as mediation do not even have a significant positive correlation. Thus in the context PTTJJ, the statement of Puspitarini (2012) and Sukirmanand Sari (2012) that this study does not support the effectiveness of the SPM role in the achievement of GUG through the internal auditor's role. Based on the findings, the competence of accounts should be improved, especially in time management, communication skills, how to search for evidence, and an explanation for the recommendation. Auditors were still influenced by the old paradigm that is as a watchdog, the representative of the Chairman and not as a catalysator and consultant. Even if the model fit as mediation has not been established, but this study confirm the indicators of the effectiveness of the SPM, the role of internal auditors and GUG. The more consistent management in implementing the COSO framework, the better management control systems, the auditor's competence and professionalism behave and act, the greater the role of internal auditors, and the less significant audit findings, the better GUG. Results of this research would be more interesting for further study if it were to be reexamined in the context of the higher education with different characteristics such as demographics, ownership status, and expanding research on the corporate level