Implementation of Risk Based Audit to Improve Company Good Corporate Governance Through Effectiveness of Internal Control: Analysis in PT Pertamina Area Sumbagut

Abstract

Nowadays development of internal auditing shifts from the traditional audit that seeks for the faults known as a watchdog, now it shifts to the new paradigm to become consultant or strategic advisor to achieved the company’s goal. For this reason, at the present auditor conduct the audit more focused on the risks that could derail the achievement of corporate goals. This is what causes changes in audit method that was originally based on control become based on risk that is known as Risk Based Audit (RBA). Some company around the world has applied this method of Risk Based Audit (RBA) to mitigate the risk. This method used to manage the risk which is more focus on the higher risk within the company. Internal audit in the company also have role to increase the good corporate governance (GCG) practice inside the company by running the audit, evaluate the internal control effectiveness, and become consultative partner to the management. This research aim to know that the good implementation of RBA has positive impact to GCG through improvement of Internal Control. This research used PT PERTAMINA area Sumbagut (Sumatera Bagian Utara) as a sample of research. This Research find that good implementation of RBA inside the company could positively influence GCG improvement.