The Utilization of Performance Measurement System within Internal Audit Process at the Supreme Audit Institution of the Republic of Indonesia

Purpose: The research explores the utilization of performance measurement system (PMS) within internal audit process and investigates the factors that shape how internal auditors use the PMS data/information, in the setting of a government audit office in a developing country. Design/methodology/ap...

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Main Author: Rivaldy, Aldre
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2020
Subjects:
Online Access:https://eprints.nottingham.ac.uk/62687/
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author Rivaldy, Aldre
author_facet Rivaldy, Aldre
author_sort Rivaldy, Aldre
building Nottingham Research Data Repository
collection Online Access
description Purpose: The research explores the utilization of performance measurement system (PMS) within internal audit process and investigates the factors that shape how internal auditors use the PMS data/information, in the setting of a government audit office in a developing country. Design/methodology/approach: Qualitative approach, using questionnaire with close and open-ended questions, semi-structured interview, and review of document, was conducted with a sample of 21 participants who are all internal auditors. Findings: Results show that internal auditors benefit from the PMS data/information. There is a varying degree of utilization of PMS within internal audit process, with an inclination toward diagnostic utilization rather than interactive utilization. The PMS itself is embedded with belief/boundary system, which act as prerequisite to other controls. Three factors, namely institutional, performance, and compliance issues has shaped the pattern of PMS utilization. Institutional factors are dominant and few internal forces such as politics and culture might demotivate innovation. Implications: Managerial implications include the need for the application of guidelines to be aligned and more frequent utilization of PMS interactively. Originality/value: This research contributes to the understanding of PMS utilization as a tool for control within internal audit process and the motivating factors. Keywords: performance measurement system, levers of control, diagnostic control system, interactive control system, belief/boundary system, institutional issues, performance issues, compliance issues
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format Dissertation (University of Nottingham only)
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spelling nottingham-626872023-04-14T13:42:37Z https://eprints.nottingham.ac.uk/62687/ The Utilization of Performance Measurement System within Internal Audit Process at the Supreme Audit Institution of the Republic of Indonesia Rivaldy, Aldre Purpose: The research explores the utilization of performance measurement system (PMS) within internal audit process and investigates the factors that shape how internal auditors use the PMS data/information, in the setting of a government audit office in a developing country. Design/methodology/approach: Qualitative approach, using questionnaire with close and open-ended questions, semi-structured interview, and review of document, was conducted with a sample of 21 participants who are all internal auditors. Findings: Results show that internal auditors benefit from the PMS data/information. There is a varying degree of utilization of PMS within internal audit process, with an inclination toward diagnostic utilization rather than interactive utilization. The PMS itself is embedded with belief/boundary system, which act as prerequisite to other controls. Three factors, namely institutional, performance, and compliance issues has shaped the pattern of PMS utilization. Institutional factors are dominant and few internal forces such as politics and culture might demotivate innovation. Implications: Managerial implications include the need for the application of guidelines to be aligned and more frequent utilization of PMS interactively. Originality/value: This research contributes to the understanding of PMS utilization as a tool for control within internal audit process and the motivating factors. Keywords: performance measurement system, levers of control, diagnostic control system, interactive control system, belief/boundary system, institutional issues, performance issues, compliance issues 2020-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/62687/1/%E2%80%98%E2%80%9920197204%E2%80%99%E2%80%99%20%E2%80%98%E2%80%99BUSI4153%E2%80%99%E2%80%99%20%E2%80%98%E2%80%99The%20Utilization%20of%20Performance%20Measurement%20System%20within%20Internal%20Audit%20Process%E2%80%99%E2%80%99.pdf Rivaldy, Aldre (2020) The Utilization of Performance Measurement System within Internal Audit Process at the Supreme Audit Institution of the Republic of Indonesia. [Dissertation (University of Nottingham only)] performance measurement system levers of control diagnostic control system interactive control system belief/boundary system institutional issues performance issues compliance issues
spellingShingle performance measurement system
levers of control
diagnostic control system
interactive control system
belief/boundary system
institutional issues
performance issues
compliance issues
Rivaldy, Aldre
The Utilization of Performance Measurement System within Internal Audit Process at the Supreme Audit Institution of the Republic of Indonesia
title The Utilization of Performance Measurement System within Internal Audit Process at the Supreme Audit Institution of the Republic of Indonesia
title_full The Utilization of Performance Measurement System within Internal Audit Process at the Supreme Audit Institution of the Republic of Indonesia
title_fullStr The Utilization of Performance Measurement System within Internal Audit Process at the Supreme Audit Institution of the Republic of Indonesia
title_full_unstemmed The Utilization of Performance Measurement System within Internal Audit Process at the Supreme Audit Institution of the Republic of Indonesia
title_short The Utilization of Performance Measurement System within Internal Audit Process at the Supreme Audit Institution of the Republic of Indonesia
title_sort utilization of performance measurement system within internal audit process at the supreme audit institution of the republic of indonesia
topic performance measurement system
levers of control
diagnostic control system
interactive control system
belief/boundary system
institutional issues
performance issues
compliance issues
url https://eprints.nottingham.ac.uk/62687/