A PROPOSED-INTERNAL AUDIT PROGRAM FOR NGO IN INDONESIA (A STUDY ON CHILDREN DEVELOPMENT CENTER–SALATIGA CLUSTER)

Abstract

Children Development Centers (CDCs) as nonprofit organizations in education sector have been playing an important role in Indonesian society. CDCs reach Indonesian children who lack prosperity to have a better life. Therefore, it is necessary for CDCs to produce a reliable financial report which should be audited by an internal auditor through a standardized internal audit. However, there are few of internal auditors having an accounting knowledge background. Thus the study aims to develop an audit program which is based on the standardized internal audit model.

The study is a further research of the internal audit model for nonprofit organization. The study has employed a research and development approach. An audit program had been developed consists of seven audit procedures in the form of seven modules. During completing the procedures, there are seven forms to record audit findings.

To sum up, the developed audit program may assist internal auditors, especially who lack accounting knowledge, to run the proper internal audit process. The suggested further research is to develop other additional procedures such as management audit or procurement. Furthermore, other future research is to develop an audit program for another NGO which has obviously a different business process from CDCs.