Internal Audit and The Shifting of Hierarchy to Holacracy Business Structure A Study on PT X
Afganjaya Pindongo (a*), David Adechandra Pesudo (b)

Universitas Kristen Satya Wacana

Abstract

This research is a qualitative research, data collection is done using test and interview methods. This study aims to analyze how the structure of a company called holacracy in the view of internal auditors in a company in Indonesia. Many businesses have relied on a corporate structure known as the hierarchy over the years. The most common sort of structure is the hierarchical structure. This organizational chart is shaped like a pyramid, with the chief executive officer at the top (CEO). The move from hierarchy to holacracy, on the other hand, is not without its difficulties. Business observers have noted a variety of problems, including its applicability on a wide scale. Some have argued the need for ideal pre-conditions for the experiment to take off, such as enterprises based in small locations with strong community ties, as a lesson from the past. Internal control can be affected due to the holacracy is a system for managing a company where there are no assigned roles and employees have the flexibility to take on various tasks and move between teams freely. Different interpretations of the shifting structure by the auditors could have an impact on how the business is run. In conclusion, the study will be helpful to businesses that is looking to switch to a holacracy framework. This study might be made as part of the agile management company^s internal audit task considerations.

Keywords: Internal Audit, Internal Control, Holacracy

Topic: Accounting