ROLE OF INTERNAL AUDITOR IN DIGITAL PAYMENT ERA, (THREAT AND OPPORTUNITY)

Abstract

At present, as technology is becoming more massive over time, the development of the industrial revolution demands innovation from various aspects. Likewise in the financial industry, both banking and non-banking. The use of technology is increasingly fast, enabling effective financial transactions. This was marked by the emergence of several new and developing companies in the financial sector, or better known as Fintech. The high level of public interest in more flexible and easy payment needs results in the number of startups engaged in electronic or digital-based payments or commonly called digital payment startups. This paper is a literature study (the results of literature review) that refers to empirical evidence (previous research reports), books and information and actual facts the results of an action research. Action Research is an attempt to study the problems that arise that aim to direct, correct, and evaluate the decisions and actions of the organization. The implementation needs to consider the public perception of the use of digital payment as a new era in the Non-cash payment system along with government discourse to activate the National Non-Cash Movement program, especially regarding the factors that are still obstacles and risks faced. The toughest challenge is how to increase public trust, that the system in digital payment is safe and that consumer privacy is maintained, both in terms of technology and from the regulatory side. In addition, companies are also required to adapt to all risks faced, including cyber security and fraud issues. In this case the internal auditor plays a role to be able to provide recommendations on strategic decisions related to the company's internal control so that the creation of a digital payment climate is conducive for companies and consumers alike.