Determinants of Sustainable Public Procurement with Probity Audit as a Mediator
DOI:
https://doi.org/10.61492/kvx2yt47Keywords:
Public Goods/Services Procurement; Sustainable Procurement; Internal Control; Probity Audit; APIPAbstract
Public procurement of goods and services that prioritizes the principle of responsible consumption is part of the implementation of sustainable development and can contribute to national economic growth. Achieving this goal requires effective internal controls in the government procurement process. This study aims to examine the influence of the effectiveness of internal controls, the independence and competence of the Internal Audit Institution (APIP), management support, and the role of external auditors on sustainable public goods and services procurement, with probity audit as the mediating variable and the electronic goods and services procurement system as well as integrity-based financial reporting as control variables. The study employs a quantitative approach using Covariance-Based Structural Equation Modeling (CB-SEM). The results indicate that the role of external auditors, probity audits, and the electronic goods and services procurement system have a significant direct effect on sustainable public goods and services procurement. The effectiveness of internal controls and the role of external auditors also have a significant effect on probity audits and, indirectly, on sustainable procurement through probity audits. Conversely, the independence of the Internal Audit Institution (APIP), the competence of APIP, and management support do not have a significant effect through this mediating mechanism. This study supports institutional theory, contingency theory, and the Three Lines Model, and emphasizes the importance of APIP independence and competency enhancement without leadership intervention in the performance of oversight functions.
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