This research intends to examine risk assessment system at each branch of micro credit of BDI Bank, so that strategy to be conducted in this research are: 1) Internal Audit strategy in detecting risks that may affect the performance of Danamon Bank micro credit branches; 2) reviews the risk assessment system for each of Danamon Bank's micro branches. This study uses Analytic Hierarchy Process (AHP) method which aims to determine risk assessment and ranking of micro bank branches that will influence the decision in determining the micro branch that will be audited. The processing results show that from 100 sample data using AHP, it is obtained 10 branches that have high risk, 56 branches that have medium risk, and 34 branches that have low risk. After the risk assessment results for each branch have been determined, then the Auditor can perform the audit planning. For branches with high and medium risk, the Auditor must audit it every year. For low-risk branches, the Auditor may perform several samples to exercise control and every four years, the Auditor must audit it.

Анотація наукової статті з наук про здоров'я, автор наукової роботи - Widjaja Henry, Ruslim Herman


Область наук:
  • Науки про здоров'я
  • Рік видавництва діє до: 2017
    Журнал: Russian Journal of Agricultural and Socio-Economic Sciences
    Наукова стаття на тему 'ANALYSIS OF RISK DETERMINATION IN INTERNAL AUDIT PLANNING IN MICRO BANKING OF PT.BANK DANAMON'

    Текст наукової роботи на тему «ANALYSIS OF RISK DETERMINATION IN INTERNAL AUDIT PLANNING IN MICRO BANKING OF PT.BANK DANAMON»

    ?DOI https://doi.org/10.18551/rjoas.2017-11.15

    ANALYSIS OF RISK DETERMINATION IN INTERNAL AUDIT PLANNING IN MICRO BANKING OF PT.BANK DANAMON

    Widjaja Henry *, Ruslim Herman

    Post Graduate Program, Tarumanegara University, Jakarta, Indonesia * E-mail: Ця електронна адреса захищена від спам-ботів. Вам потрібно увімкнути JavaScript, щоб побачити її.

    ABSTRACT

    This research intends to examine risk assessment system at each branch of micro credit of BDI Bank, so that strategy to be conducted in this research are: 1) Internal Audit strategy in detecting risks that may affect the performance of Danamon Bank micro credit branches; 2) reviews the risk assessment system for each of Danamon Bank's micro branches. This study uses Analytic Hierarchy Process (AHP) method which aims to determine risk assessment and ranking of micro bank branches that will influence the decision in determining the micro branch that will be audited. The processing results show that from 100 sample data using AHP, it is obtained 10 branches that have high risk, 56 branches that have medium risk, and 34 branches that have low risk. After the risk assessment results for each branch have been determined, then the Auditor can perform the audit planning. For branches with high and medium risk, the Auditor must audit it every year. For low-risk branches, the Auditor may perform several samples to exercise control and every four years, the Auditor must audit it.

    KEY WORDS

    Analytic hierarchy process, internal audit, micro banking.

    Financial Institutions may be in the form of Commercial Bank, Credit Bank and Sharia Bank. Besides bank, other financial institutions may be in the form of Savings and Loans Cooperatives, Insurance and Securities. All financial institutions have their business activities which are always faced with risks, including: risk of credit, operational, market, liquidity, compliance, reputation, legal and strategic. Definition of risk is a condition that can hinder the purpose of a business (Supono, 2007). Danamon Bank is one of the commercial banks that has several kinds of credit products such as working capital loans, investments, consumptive, credit cards, etc. Micro credit is one of Danamon Bank 's business with more than 600 branches spread all over Indonesia. Given the importance of supervisory function, it is necessary to have a risk assessment system in each branch. A risk assessment system for microcredit branches will assist in the determination of future audit plans more precisely. Audit is a process of evaluation and accumulation of evidence about various information to determine and report the level of relationship between information obtained with certain criteria (Arens, 2008). Improper risk assessment may cause high risk branches not to be a priority in auditing and may cause harm to the Bank.

    This research intends to examine risk assessment system in each branch of micro credit of BDI Bank, so that the strategies that will be conducted in this research are: 1) Internal Audit strategy in detecting risks that may affect the performance of Danamon Bank micro credit branch 2) reviews the risk assessment system for each of Danamon Bank's micro branches. Internal Audit of Danamon Bank needs to make strategic changes by applying a Risk Based Audit approach in conducting examination tasks. Risk Based Audit is an audit approach that has been developed since 2000 and is currently widely used by internal audit institutions in some organizations because this approach is in line with the development of Internal Audit functions to be effectively able to provide value added, especially for related matters with the organization's internal control (trusted advisor).

    A risk-based audit approach should be able to provide assurance that business risks have been identified, evaluated, and monitored on an ongoing basis (Andreas et al, 2008). Internal control systems and monitoring activities by management of internal controls have

    been well designed and operate effectively, efficiently, and economically in managing those risks in accordance with directives granted (or approved) by the board of directors. The role of Internal Audit in a bank is necessary to minimize the risks that exist in this industry, so the existence of Internal Audit can improve bank performance in achieving the goal. According to the Institute of Internal Auditors (IIA), internal audit is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes (The Institute of Internal Auditors). In Academic literature in Indonesia (Mulyadi, 2002), the meaning of Internal Audit itself is the employee who is assigned as Auditor to check whether the rules and policies determined by the bank in maintaining business assets have been implemented in accordance with the rules. The current audit activities are not just financial audits of financial audit and compliance audit, but the focus of attention is on all aspects that affect the company's performance and management control as well as the risk aspects of management and internal control (Buana, 2009).

    Given that Danamon Bank micro banking operates in more than 600 branches, it is necessary to have a system that can determine the level of risk in each branch. This level of risk per branch (Macro Risk) will assist audit management in the preparation of audit plans that are generally related to the adequacy of human resources, audit time, and audit costs. Risk Based Audit System with macro risk approach for new micro credit branches was developed at Danamon Bank in 2015 and the system was then socialized and implemented to internal audit units at headquarters and region. The success of the Risk Based Audit system with the determination of risk per branch (macro risk) can not be separated from several times of trial and verification conducted by comparing the level of risk per branch with audit results conducted by the auditor.

    Business Strategy and Segmentation. Danamon Bank combines the ability to offer services and products that meet the needs of each segment by ensuring that every customer's needs are met well while considering all potential risks. Business strategy and business segmentation shows that Danamon Bank makes micro banking consisting of Mass Self-Employed and Mass Employed products as one of the foundations in business / commercial product strategy and consumer products.

    Corporate Risk Management. Danamon Bank uses eight risk categories in accordance with Bank of Indonesia's regulation, eight risk categories determined by Bank of Indonesia are: credit, market, liquidity, operational, strategic, reputation, law and compliance. Danamon Bank also implements Three Lines of Defense in its risk management and control framework concept. First Line of Defense is a line of business that will identify, control, and reduce risks in its own business. Second Line of Defense is the risk management division. Third Line of Defense is the Internal Audit Unit that conducts the examination and testing of the effectiveness of the risk implementation and control management.

    Company's Performance. The financial performances of Danamon Bank for the budget year of 2016, based on the annual consolidated financial statements that have been audited are:

    1. Total bank assets as of December 2016 is IDR 174 trillion with earning assets of IDR 166 trillion (95%).

    2. The loan portfolio granted as of December 31, 2016 is IDR 126 trillion with mass market loan composition such as micro loan, two-wheeled motor vehicle loan, unsecured personal loan, reaching to IDR 45 trillion.

    3. Non-Performing Loan (NPL) of Danamon bank is IDR 3.7 trillion or 3.1% of the total loan provided by the bank.

    4. Bank operating income during 2016 was IDR 4.9 trillion (grew 26% compared to 2015) with net profit of IDR 2.8 trillion (12% growth compared to 2015)

    5. Capital Adequacy Ratio (CAR) is 20.9% and Return on Average Equity (ROAE) is at the level of 8%.

    Details of Danamon Bank's financial performance and financial ratios can be seen in the table below.

    Table 1 - Danamon Bank's Financial Performance in 2016

    In billions of Rupiah except share data 2016

    CONSOLIDATION BALANCE

    Asset 174.087

    Productive Asset-bruto a) 166.651

    Credit Provided-bruto b) 122.385

    Loans in Problem 3.743

    Effects - bruto 17.446

    Government's Obligation 9.563

    Savings 106.612

    Amount of Funding 113.890

    Amount of Liabilities 137.709

    Equity and Controller Interest 36.378

    Inclusion - Net 165

    Number of Shares Paid and Fully Paid (in unit) 9.584.643.365

    REPORT OF CONSOLIDATED STATEMENTS OF INCOME

    Interest Income 20.665

    Interest Expense 6.876

    Interest Income and Net Underwriting 14.400

    Other Operational Income 4.071

    General Expense and Administration 3.020

    Manpower Expense and Allowance 4.879

    Report of Impairment Loss 4.441

    Operational Income - Net 4.934

    Non-operational Expense (Income) - Net 541

    Profit Right 4.393

    Income Tax Expense 1.600

    Net Profit 2.793

    Source: www.idx.co.id - The Annual Financial Statement of Listed Company (BDMN).

    Table 2 - Danamon Bank's Financial Ratios in 2016

    fin billions of Rupiah except share data) 2016

    KEY FINANCIAL RATIOS (5i)

    1 Capital

    1. Capi: al Adequacy Ratio (CAR) Consolidated ® 20.9

    Tier 1 20.1

    Tier 1 0.8

    2. Assets to EqJlty 4.8

    II. Earning Assets

    1. Non Perfomn'ng Earning Assets and Non ProdLc: ive Assets to Total Earnings and hen Productive Assets 1.9

    2. Non Performing Eam'ng Assets to Total Productive Assets 2.4

    3. Non Performing Loan :. (NPL) to Total Loans-Gross 3.1

    4. Non Ferforiring Loan (NPL) to Total Loars-Net 1.8

    5. Allowance far Impairment Losses for F'nanc'al Assets to Product've Assets 3.0

    5. Lean _oss Coverage 116.9

    III. Rentabilite

    1. Re: urn or Average Assets (ROAA) 2.5

    2. Return on Average Ecu'ty (ROAE) S.O

    3. Debt to Assets 0.79

    4. Debt to Equity 3.79

    5. Net ntereit Margin (NIMj 8.9

    5. Cos: to Income 43.8

    7. Fee Income 22.1

    S. Op era t'ng Expense to Operating Income 77.3

    9. Cost of Funds 9.1

    Source: www.idx.co.id - The Annual Financial Statement of Listed Company (BDMN).

    METHODS OF RESEARCH

    This study uses the Analytic Hierarchy Process (AHP) method which aims to determine risk assessment and ranking of micro bank branches that will influence the decision in determining the micro branch that will be audited, (Saaty, 2000). The end result of AHP will determine the rank or vector priority of each branch. This study uses AHP model formulation to assess the risk of Danamon Bank micro branches that generate risk ranking in each branch. The AHP model basically has three steps, namely hierarchy formation, assessment, and priority vectors, (Saaty, 2013). The stages of this research include:

    Data collection of 15 risk factors that have a level of risk. The beginning of this research will perform the data collection needed for the calculation of 15 risk factors that already have a risk level. Data has been processed by Analytic Internal Audit division every month. This research will use data of August 2015 until March 29th 2017.

    The Formation of Hierarchy. The formation of Hierarchy in the Analytic Hierarchy Process (AHP) model begins with the determination of the objectives of this research problem. This research will use AHP model with 4 level hierarchies as follows:

    1. Level 1 - The target of the decision that will be taken is placed at the top of the hierarchy.

    2. Level 2 - Assessment criteria that can indicate the quality or level of risk factors of the alternative model used.

    3. Level 3 - Assessment sub-criteria that can indicate the quality or level of risk factors of the alternative model used in level 2 criteria.

    4. Level 4 - Branches assessed at risk level that may indicate quality or risk level.

    Paired Matrix Formation (Criteria, Sub-criteria, and Branches). The formation of a pair

    matrix can be done by order according to the number of pairs in each group. Pair weight assessment can be incorporated into the cells above. The diagonal cell will be entered with the number 1. The other cell will be filled with the number corresponding to the division of the weight of the pair and on the opposite cell, it will be filled with the opposite number (eg, may = yam ). Distribution of the weight of the spouse can be done each order and each group.

    Formation of Inter-paired Normalization (Criteria, Sub-criteria and Branches). Formation of normalization is done after making the formation of matrix pair between data done in each group, to get normalization by counting data per cell divided by amount of data per group vertically.

    Cell l

    Normalization Data 1 = ----; -. " ,--

    Total Number of Column 1

    The above calculation may be repeated for all data and calculations are performed for the pair between criteria, sub-criteria, and branches.

    Formation of Inter-paired Priority Vector (Criteria, Sub-criteria, and Branches). The formation of priority vectors is done after the normalization of pairs between the data functions to obtain a priority vector by calculating the total amount of data as N and multiplied by the total normalization.

    Inter Data VP 1 = 1 / N x sum (Normalization Data 1)

    The above calculation may be repeated for all data and calculations are performed for the pair between criteria, sub-criteria, and branches.

    Calculation of Each Branch Priority Vector Total. Determining Total of Priority Vector is done by calculating priority vectors of criteria, sub-criteria, and branches as shown in the following equation.

    Total Branch 1 = (VP Criteria 1 x VP Sub Criteria 1 x VP Branch 1) + ... + (VP Criteria Nx VP Sub

    Criteria Nx VP Branch N)

    Once the total priority vector for each branch has been calculated, the branch rank can be determined from the branch with the highest priority total vector until the branch has the lowest total vector priority. Branches that have the highest priority vector total are the highest-risk branches and the branches which have the lowest total vector total are the lowest-risk branches.

    Calculating Consistency Ratio (CR). Consistency Ratio is calculated by dividing the Consistency Index (CI) with Random Index (Rl). The Consistency Index (CI) is obtained from the average priority vector value (A) divided by the number of alternatives / types of risks used (n).

    A - n CI

    Random Index (Rl) for matrix with order 10 x 10 is 1.49.

    Formation of Risk Level Scoring. Forming a risk-level scoring is by finding the maximum and minimum total vector priorities to gain distance at each risk level. In the formation of risk level scoring, it will be divided into 3 levels, namely High Risk, Medium Risk, and Low Risk.

    RESULTS AND DISCUSSION

    Branch Assessment Results Using AHP. Analytic Hierarchy Process (AHP) used in this study aims to determine the risk assessment and ranking of Danamon Bank micro branches that will influence the decision in determining the micro branches that will be audited. The end result of AHP will determine the rank or vector priority of each branch. This study uses AHP model formulation to assess the risk of Danamon Bank micro branches that generate risk ranking in each branch. The AHP model basically has three steps, namely formation of hierarchy, assessment, and priority vectors.

    Hierarchical Formation Analysis Results. Hierarchical formation is a conceptual approach for rating ranking models using the AHP model. The AHP model used in this study has 4 hierarchical levels:

    1. Level I: The top of the hierarchy is placed for the target of the decision that will be taken. The purpose of this study is to assess risk in micro branch at Danamon Bank to obtain risk ranking for each branch.

    2. Level II: The second level is used for the criteria to assess the risk on the micro-branch and to rank risk on each branch. The criteria used are: Unsecured, Top Up, New NOA, Restructure, FID Flow Rate, Unsec OS Per Tot OS, Last OS, NPL WO 6M, Flow Rate, Unrecovery Rate.

    3. Level III: The third level is used for sub-criteria of criteria at level II that can assist in risk assessment of microcredit in more detail.Subcriteria used in the study are:

    • Unsecured has sub criteria DPD 30 Unsec and OS Unsec Last 1Y \

    • Top Up has sub criteria New NOA Top Up per Tot NOA and DPD 30 Top Up;

    • New NOA has sub criteria New NOA 1Y and New NOA 6 / W;

    • Restructure has sub criteria Amt Rest Last 1Y and DPD 30Rest;

    • FID Flow Rate has sub criteria FID and Flow Rate 30+.

    4. Level IV: The fourth level is used for risk assessment on the micro banking branch to determine the risk rankings on the branch.

    Results of Score Formation / Weight of Risk Factors. Risk factors along with their weight that have been determined by the auditor can be formed as a matrix. Matrix is ​​formed according to each hierarchy and order group according to the number of risk factors or branches of each hierarchy group. Assessment of specified weights can be entered according to existing cells, for each cell, it can be filled in accordance with its partner in

    accordance with the row and column of the score (eg rowwei3ht = t = i \

    \ Column weight 6 /

    Results of Paired Matrix Inter Criteria. Intercriteria Matrix is ​​10 X 10 ordered matrix formed from risk factors and matrix formation results that can be seen in the table below:

    Table 3 - Paired Matrix Inter Criteria

    UNSECURED TOPUP NEW NOA RESTRUCTURE HD FLOW RATE OS UNSEC PER TOT OS LASTOS NPL WO 6M FLOW RATE UNRECOVERY RATE

    Weight 6 4 4 1 9 4 3 6 3 2

    UNSECURED e 1.0000 1.5000 1,5000 6.0000 0.6667 1.5000 2.0000 1.0000 2.0000 3.0000

    TOPUP 4 0.6667 1.0000 1,0000 4.0000 0.4444 1.0000 1.3333 0.6667 1.3333 2.0000

    NEW NOA 4 0.6667 1.0000 1,0000 4.0000 0.4444 1.0000 1.3333 0.6667 1.3333 2.0000

    RESTRUCTURE 1 0.1667 0.2500 0.2500 1.0000 0.1111 0.2500 0.3333 0.1667 0.3333 0.5000

    FID FLOW RATE 9 1.5000 2.2500 2,2500 9.0000 1.0000 3.0000 3.0000 1.5000 3.0000 4.5000

    OS UNSEC PER TOT OS 4 0.6667 1.0000 1,0000 4.0000 0.3333 1.0000 1.3333 0.6667 1.3333 2.0000

    LASTOS 3 0.5000 0.7500 0,7500 3.0000 0.3333 0.7500 1.0000 0.5000 1.0000 1.5000

    NPLW06M e 1.0000 1.5000 1,5000 6.0000 0.6667 1.5000 2.0000 1.0000 2.0000 3.0000

    FLOW RATE 3 0.5000 0.7500 0,7500 3.0000 0.3333 0.7500 1.0000 0.5000 1.0000 1.5000

    UNRECOVERY RATE 2 0.3333 0.5000 0,5000 2.0000 0.2222 0.5000 0.6667 0.3333 0.6667 1.0000

    SUM 7.0000 10.5000 10,5000 42.0000 4.5556 11.2500 14.0000 7.0000 14.0000 21.0000

    Source: Macro risk assessment Audit Analytic - Danamon Bank 'Internal Audit Unit as of 31 March 2017.

    Results of Paired Matrix Inter Sub-criteria. Intercity Matrix for Unsecured Matrix is ​​2x2 ordered matrix formed from risk factors that support the criteria factor on the criteria and the result of matrix formation can be seen in the table below:

    Table 4 - Paired Matrix of Inter Unsecured Sub-criteria

    DPD3DUNS EC OSilNSECLASTlY

    Weight S 2

    DPD30UN5EC 3 1.0000 1.5000

    OSU NS ECLAST1Y 2 0.6667 1.0000

    SUM 1.6667 2.5000

    Source: Macro risk assessment Audit Analytic - Danamon Bank Internal Audit Unit as of 31 March 2017.

    Results of Inter-branch Matrix. Inter-branch matrix for FID is a matrix of 10 X 10 formed from the branch. The results of matrix formation can be seen in the table below:

    Table 5 - Paired Matrix of FID Inter Unsecured Sub-criteria

    Branch 1 Branch 2 Branch 3 Branch 4 Branch 5 Branch 6 Branch 7 Branch 8 Branch 9 Branch 10

    TVeigbt 5 5 2 4 2 4 l l 1 l

    Braach 1 5 1,0000 1.0000 2.5000 1.2500 2.5000 1.2500 5.0000 5.0000 5.0000 5.0000

    Branch 2 5 1,0000 1.0000 2.5000 1.2500 2.5000 1.2500 5.0000 5.0000 5.0000 5.0000

    Branch 3 2 0,4000 0.4000 1.0000 0.5000 1.0000 0.5000 2.0000 2.0000 2.0000 2.0000

    Braach 4 4 0,8000 0.8000 2.0000 1.0000 2.0000 1.0000 4.0000 4.0000 4.0000 4.0000

    Brauch 5 2 0,4000 0.4D00 1.0000 0.5000 1.0000 D.5000 2.00 00 2.0000 2.0000 2.0000

    Branch 6 4 0.8000 0.8000 2.0000 1.0000 2.0000 1.0000 4.0000 4.0000 4.0000 4.0000

    Branch 7 1 0,2000 0.2000 0.5000 0.2500 0.5000 0.2500 1.0000 1.0000 1.0000 1.0000

    Branch 8 1 0,2000 0.2000 0.5000 0.2500 0.5000 0.2500 1.0000 1.0000 1.0000 1.0000

    Branch Q 1 0,2000 0.2000 0.5000 0.2500 0.5000 0.2500 1.0000 1.0000 1.0000 1.0000

    Branch 10 1 0,2000 0.2000 0.5000 0.2500 0.5000 0.2500 1.0000 1.0000 1.0000 1.0000

    SUM 5,2000 5.2000 13.0000 6.5000 13.0000 6.5000 26.0000 26.0000 26.0000 26.0000

    Source: Macro risk assessment Audit Analytic - Bank Danamon Internal Audit Unit as of 31March 2017.

    Weight Result of Priority Vector. The formation of the priority vector weights on the AHP method for each factor in the matrix is ​​intended to allow the weight of each factor that will be expressed as normalized. This normalized weight is a weight of the relative value for each factor in each column, by comparing each scaled value with the number of columns.

    Weight Result of Inter-Criteria Pair Matrix Priority Vectors. Normalization of pair matrix between criteria is a matrix of 10x10 formed from risk factor and result of normalization formation of matrix that can be seen in table below.

    Table 6 - Matrix of Paired Normalization between Risk Factors

    UNSECURED TOPUP NEW NOA RESTRUCTURE FID FLOWRATE OS UNSEC PER TOT OS LAST OS NPLWO 6M FLOWRATE UNRECOVERY RATE

    Weight 6 4 4 1 9 4 3 6 3 2

    UNSECURED 6 0.1 «9 0.1429 0.1429 0.1429 0.1463 0.1333 0.1429 0.1429 0.1429 0.1429

    TOPUP 4 0.0952 0.0952 0.0952 0.0952 0.0976 0.0889 0.0952 0.0952 0.0952 0.0952

    NEW NOA 4 0.0952 0.0952 0.0952 0.0952 0.0976 0.0889 0.0952 0.0952 0.0952 0.0952

    RESTRUCTURE 1 0.0238 0.0238 0.0238 0.0238 0.0244 0.0222 [>.0238 0.0238 0.0238 0.0238

    FID FLOWRATE 9 0.2143 0.2143 0.2143 0.2143 0.2195 0.2667 0.2143 0.2143 0.2143 0.2143

    OS UNSEC PER TOT OS 4 0.0952 0.0952 0.0952 0.0952 0.0732 0.0889 0.0952 0.0952 0.0952 0.0952

    LASTOS 3 0.0714 0.0714 0.0714 0.0714 0.0732 0.0667 0.0714 0.0714 0.0714 0.0714

    NPLW06M 6 0.1429 0.1429 0.1429 0.1429 0.1463 0.1333 0.1429 0.1429 0.1429 0.1429

    FLOWRATE 3 0.0714 0.0714 0.0714 0.0714 0.0732 0,0667 0.0714 0.0714 0.0714 0.0714

    UNRECOVERY RATE 2 0.0476 0.0476 0.0476 0.0476 0.0488 0.0444 0.0476 0.0476 0.0476 0.0476

    SUM 1.0000 1.0000 1.0000 1.0000 1.0000 10000 1.0000 1.0000 1.0000 1.0000

    Source: Macro risk assessment Audit Analytic - Danamon Bank Internal Audit Unit as of 31 March 2017.

    Table 7 - Weight Result of Risk Factor Priority Risk

    PEJ OR] TV VECTOR

    UNSECURED 0.1423

    TOPUP 0.0948

    NEW NOA 0.0948

    RESTRUCTURE 0.0237

    FID FLOWRATE 0.2200

    OS UNSEC PER TOT OS 0.0924

    LASTOS 0.0711

    NPLW06M 0.1423

    FLOWRATE 0.0711

    UNRECOVERY RATE 0.0474

    Source: Macro risk assessment Audit Analytic - Danamon Bank Internal Audit Unit as of 31 March 2017.

    Results of Sub-criteria Priority Vector. Normalization and vector priority of pair matrix between sub-criteria for Unsecured is 2x2 coordinated matrix formed from risk factor that support the criterion factor in criteria and result of normalization formation and vector of priority matrix can be seen in table below:

    Table 8 - Normalization Matrix and Priority Vectors of Inter Unsecured Batches

    DPDJOUNSEC OSUNSECLAST1Y

    W&i ^ bl 3 2 PRIORITY VECTOR

    DPD30 UNSEC 3 0,6000 0.6000 0,6000

    OSUNSECLAST1Y 1 0.4000 0.4000 0.4000

    SUM 1.0000 1.0000

    Source: Macro risk assessment Audit Analytic - Danamon Bank's Internal Audit Unit as of 31 March 2017.

    Results of Inter-branch Pair Matrix. The normalization matrix and the vector weight of the intermediate pair priority for FID are the 10x10 ordered matrix formed from the branch and the result of matrix formation can be seen in the table below.

    Table 9 - Paired Normalization Matrix of FID Inter-branches

    Branch 1 Branch 2 Branch 3 Branch 4 Branch 5 Branch 6 Branch 7 Branch S Branch 9 Branch 10

    Weight 5 5 i 4 1 4 1 1 1 1

    Branch 1 5 0.1923 0.1923 0.1923 0.1923 0.1923 0.1923 0.1923 0.1923 0.1923 0.1923

    Braach 2 5 0.1923 0.1923 0.1923 0.1923 0.1923 0.1923 0.1923 0,1923 0.1923 0.1923

    Branch 3 2 0.0769 0.0769 0.0769 0.0769 0.0769 0.0769 0.0769 0.0769 0.0769 0.0769

    Branch 4 4 0.1538 0.1538 0.1538 0.1538 D.1538 0,1538 0.1538 0.1538 0.1538 0.1538

    Branch $ 1 0.0769 0.0769 0.0769 0.0769 0.0763 0.0769 D.0769 0.0769 0.0769 0.0769

    Branch 6 "4 0.1538 0.1538 0.1538 0.1538 0.1538 0,1538 0.1538 0.1538 0.1538 0.1538

    Branch 7 1 0.0385 0.0385 0.0385 0.0385 0.0365 0.0385 0.0385 0.0385 0.0385 0.0385

    Branch? 1 0,0385 0.0385 0.0385 0.0385 0.0385 0,0385 D.0385 0.0385 0.0385 0.0385

    Branch 9 1 0,0385 0.0385 0.0385 0.0385 0.0385 0,0385 D.0385 0.0385 0.0385 0.0385

    Branch 1ft 1 0.0385 0.03 85 0.0385 0.0385 0.0385 0.0385 0.0385 0.0385 0.0385 0.0385

    SUM 1,0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

    Source: Macro risk assessment Audit Analytic - Danamon Bank Internal Audit Unit as of 31 March 2017.

    RJOAS, 11 (71), November 2017 Table 10 - Matrix of Paired Priority Vector between FID Branches

    PRIORITY VICTOR

    Braach 1 0.1923

    Branch 2 0.1923

    Braach 3 0.0769

    Braach -1 0.1538

    Braach 5 0.0769

    Braach 6 0.1533

    Branch 7 0.0365

    Braach 3 0.03S5

    Braach 3 0.0365

    Braach 10 0.03 85

    Source: Macro risk assessment Audit Analytic - Danamon Bank Internal Audit Unit as of 31 March 2017.

    Calculation of Consistency Ratio (CR). The Consistency Ratio (CR) of risk factors used in this study is 0.0601%. It shows that the risk factors (elements) used have logical relationships and are ranked consistently according to logical criteria.

    Ranking Assessment Results. Data processing yields priority weights that can determine the risk ranking of each branch. The results of AHP treatment show 2 branches that have high risk, 4 branches have medium risk, and 4 branches have low risk as shown in the table below.

    Table 11 - Risk Ranking of Each Branch

    RANK TO TAL OF PRIORITY VICTOR PC?. ~ T PRIORITY MOTOR

    Brauet 1 10 0.1336 13.36

    Braccb 2 9 0.1306 13.06

    Brauch 3 8 0.1119 IL 19

    Brauet 4 7 0.1021 10.21

    Brauch? 6 0.0965 9.65

    Brauet 6 5 0.0947 9,47

    Brauet 7 4 0.0891 8,91

    Brauet S 3 0.0373 8.78

    Brauet 9 2 0,0819 8.19

    Brauet IQ 1 0.0719 7.19

    Source: Macro risk assessment Audit Analytic - Danamon Bank Internal Audit Unit as of 31 March 2017.

    The risk ranking scores used are divided or classified into 3 levels. The results of data processing show the minimum value of 7.19%, the maximum value of 13.36%. and 3 levels that have a distance scale of 2.06% can be seen in below.

    Table 12 - Ranking Risk Scoring

    Max: 13.36

    Min: 7.19

    Raiiqe: 2.06

    Low: 7.19 - 9.25

    Medium: 9.26-11.30

    High: I1.3S-I3.36

    Source: Macro risk assessment Audit Analytic - Danamon Bank Internal Audit Unit as of 31 March 2017.

    CONCLUSION

    Risk assessment on the branch of micro banking in audit planning is very effective because the assessment process is quite short with the level of accuracy which is optimal. Risk assessment in this study i conducted by measuring risk level values ​​based on a multi-criteria AHP method that can describe the level of risk in each branch. Risk assessment is based on the type of risk then used as the criterion of the AHP model. The processing results from 100 sample data using AHP, it is obtained 10 branches that have high risk, 56 branches that have medium risk, and 34 branches that have low risk. After the risk assessment results for each branch have been determined, then the Auditor can perform the audit planning. For branches with high and medium risk, the Auditor must audit every year. For low-risk branches, the Auditor may perform several samples to exercise control and every four years, the Auditor must audit it.

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    Ключові слова: Analytic hierarchy process / internal audit / micro banking

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