Literature Review: Implementation of Risk-Based Internal Audit in Improving the Effectiveness of Regional Asset Supervision

This study aims to analyze the implementation of Risk-Based Internal Audit (RBIA) in improving the effectiveness of regional asset supervision. Regional assets are crucial resources that support government administration and public service delivery. However, findings from supervisory institutions indicate that asset management in local governments is still plagued by weaknesses in recording, safeguarding, and utilization. Conventional internal audits are considered insufficient to optimally identify and address such risks. RBIA offers a more strategic approach by allowing auditors to prioritize areas with the highest risk levels, resulting in more focused and efficient supervision. This research employs a descriptive qualitative method with a case study approach in a selected local government. The results show that RBIA implementation is not yet optimal due to limited human resources, inadequate understanding of risk management, and lack of integration in asset information systems. Nevertheless, RBIA has proven to enhance supervision effectiveness when implemented systematically and continuously. The study recommends strengthening internal auditors' capacity and updating risk-based asset management systems.