Analysis of Higher Education Readiness in Medan City in Implementing Risk Based Internals Audit to Realize Good University Governance

Abstract

In the past decade, there has been a paradigm shift in financial management in certain types of work units in government agencies and ministries to become more flexible, such as hospitals and universities. This flexibility is given based on the characteristics of the type of service provided because it demands faster services in addition to the work unit also managing public funds. To achieve good corporate governance, the Ministry of Education and Culture (Kemendikbud) of the Republic of Indonesia is trying to encourage the establishment of an Internal Control Unit (SPI) at the university level. The existence of SPI as a whole in every work unit of the Ministry of Education and Culture is regulated in the Regulation of the Minister of National Education of the Republic of Indonesia No. 47 of 2011 concerning Internal Supervisory Units within the Ministry of National Education. It should be understood that every internal auditor must have a paradigm that is in line with the goals of the organization. The work methods and procedures must be adjusted to the demands of management or stakeholders. This is where one form of the function of the internal auditor, which is to help management minimize risk. This has led to the emergence of the concept of risk-based internal auditing (RBIA), which we usually call risk-based auditing or other adapted terms. RBIA is a methodology that combines an organization's risk management framework with internal audit. Through this methodology, internal auditors ensure that the organization's risk management processes are implemented to manage risk effectively. This research aims to analyze the Readiness of Higher Education in Medan City in Implementing Risk-Based Internals to Realize Good University Governance. The Result is The level of readiness for implementing AIBR at PTN in Medan City obtained a score of X = 4.23 which means that it is ready to implement AIBR but still needs a slight improvement.