The Role of Social Problem of Auditee as a Predictor of Compliance and the Follow-Up on Auditor Findings

Abstract : This study aims to examine the structural model investigating the effects of functional training intensity and rule compliance on the follow-up actions regarding auditor findings, with the auditee's social problems serving as an intervening variable. The research was conducted at the Regional Apparatus Organizations in Serang City, Indonesia, involving 215 respondents from the planning and finance divisions of these organizations.The analysis employed Structural Equation Modeling using Partial Least Squares (SEM-PLS) with proportional random sampling. Data were collected through observation and documentation, using a questionnaire that had been validated and tested for reliability. Hypotheses were tested using F-tests and t-tests. The findings reveal that functional training intensity, rule compliance, and the social problems of the auditee significantly influence the follow-up on auditor findings within the Regional Apparatus Organizations in Serang City. Continuous functional training appears to enhance rule compliance and improve the management of auditee social problems, which in turn contributes to more effective follow-up on auditor findings.