The Role of Internal Supervisory Unit in Conducting Company Internal Audit at PT Pupuk Iskandar Muda

Abstract

This research was conducted to determine the effectiveness of the Internal Supervisory Unit (SPI) of PT XYZ from 2020 to 2023 and analyze internal audit procedures at PT XYZ, using a qualitative descriptive method. Analysis of internal audit procedures and the effectiveness of the Internal Supervisory Unit (SPI) was carried out by collecting data directly from the company and interviews. The results showed that the internal audit process implemented at PT XYZ reflects adherence to the International Professional Practices Framework (IPPF) Standards and follows the theory of Hiro Tugiman (2006). The effectiveness of the supervisory function of the Internal Supervisory Unit of PT XYZ in general, when viewed from the realization of the LHP Annual Supervisory Work Program (PKPT) from 2020 to 2023, has not been effective due to achievements that have not been following the plan and the realization of the Audit Report (LHP) which has not reached 100%, however, several additional factors affect the effectiveness of the Internal Supervisory Unit (SPI) of PT XYZ, including the timeliness of the implementation of audits by the Internal Supervisory Unit (SPI), the accuracy of Supervisory Data Follow-up Results of Internal Audit Recommendations, Objectivity and Independence of Internal Audit Implementation, Education and Training Programs of the Internal Supervisory Unit of PT XYZ.