The Information Quality Impact on Internal Audit Innovation: Case Study in Indonesia's Public Service Agencies

Abstract

This study intends to quantify the relationship between information quality (IQ) and internal audit innovation (IAI) in Indonesian public service agencies (PSA). This quantitative study surveyed 102 public sector organizations with 288 internal auditors and analyzed data using the Structural Equation Modelling technique. The data were then processed with Lisrel 8.8 statistical software. The results of the study indicated that IQ contributed to the growth of audit innovation within public service organizations' internal audit departments (IAD). In addition, the accuracy, completeness, and timeliness of the information available to support internal audit can enhance innovation, and the influences of these IQ dimensions are extremely significant, particularly on innovation relating to the application of risk-based internal audit, technology-based audit techniques, and agile auditing dimensions. The study will demonstrate, through a rigorous testing phase, that the overall role of IQ can stimulate the improvement of IAI in Indonesian public service organizations.