THE INFLUENCE OF INTERNAL AUDIT ON CREDIT PROVISION IN BANKING FINANCIAL INSTITUTIONS(Empirical Study at Bank Tabungan Negara)

Abstract

This study discusses the influence of internal audit in granting credit in Banking Financial Institutions (Empirical Study at Bank Tabungan Negara). Internal audit is an important component in bank management and is the basis for bank operational activities. Credit is the provision of money or bills that can be equated with it, based on a loan agreement or agreement between the bank and another party that requires the borrower to repay the debt after a certain period of time with interest. assessment of credit applications, namely: Character (Character/Personality), Capacity (Ability), Capital (Capital), Condition of economy (Economic conditions), and Collateral (Guarantee). This study aims to determine how internal audit affects the granting of credit in the company. The research method used in this study is a quantitative method. In this study, the sampling technique used is purposive sampling. Based on the results of the study on the influence of internal audit in granting credit in Banking Financial Institutions (Empirical Study at Bank Tabungan Negara), the following conclusions can be drawn. The t-test results, with a calculated t of 5.074 and degrees of freedom (n-k-1) or 38-1-1 = 36, yield a t-table of 2.028, thus t-calculating > t-table (5.074 > 2.028). This means that H0 is rejected and H1 is accepted, indicating a significant influence between internal audit and credit disbursement at Bank Tabungan Negara. The coefficient of determination (R Square) of 0.400 indicates that approximately 40% of the variation in credit disbursement can be explained by internal control audits.