ABSTRACT
DETERMINANT FACTORS OF INDEPENDENCE AND OBJECTIVITY OF INTERNAL AUDITORS IN INDONESIAN GOVERNMENT ORGANIZATIONS

FEBRINA KURNIAWATI
NIM F1315042

We examine the effects of auditors competence, auditor-auditee relationship, professional identification, top management support, and internal auditor-external auditor relationship towards internal auditors independence (Ahmad and Taylor, 2009) and objectivity (Muqattash, 2011) in Ministry of Finance and Ministry of Religious Affairs. Responses from questionnaires were collected from 204 respondents of internal auditors in both ministries. Using multiple linear regression model, we found that auditors competence and auditor-auditee relationship have a significant effect towards both independence and objectivity of the auditors, while top management support only affects auditors objectivity. The study shows different results for each ministry. Only auditor-auditee relationship that affects independence in both ministries, and only auditors competence that affects objectivity in both ministries. Thus, we agree that auditors competence and auditor-auditee relationship are two most important factors in determining both independence and objectivity of internal auditors in Indonesian government entities.
Keywords: Independence, objectivity, internal auditors, government entity,     competence, Indonesia