THE EFFECT OF INTERNAL AUDIT AND INTERNAL CONTROL SYSTEM ON PUBLIC ACCOUNTABILITY: THE EMPERICAL STUDY IN INDONESIA STATE UNIVERSITIES

Accountability is foundation of public service and university is one of public sector organizations whose main function is service. This research focuses on an effect of internal audit and internal control toward accountability of public service universities (BLU) in Indonesia. Thus, the objectives are internal audit and internal control in forming accountability which is based on good governance. This research uses 90 respondents of the parties directly involved in financial management in public service universities throughout Indonesia. The research data are the primary data obtained by sending questionnaires to the respondents. The data were analyzed using regression analysis and using WarpPLS application. The research findings indicate the independent variable, internal audit (represented by the parties directly involved in financial management) does not give influence and cannot improve accountability and internal control system (represented by SPI/internal control unit) gives influence and can improve accountability. Then, accountability must be built in order to create good university governance. The study results also provide important implications to researchers and practitioners in university governance.