The findings of this study confirm that the implementation of risk management and risk-based internal audit has a significant impact on the ability to detect fraud. Although the theory of risk-based audit provides a strong understanding of risk management and internal control, its implementation in the public sector still faces challenges. The lack of adequate understanding and preparation among Local Government Agencies (OPDs), as well as the need for further guidance in implementing risk-based internal audits, remain the main focus to improve effectiveness in minimizing corruption and fraud scandals at the regional government level.

The study, which employed a quantitative approach, highlights several factors contributing to the success of Risk-Based Internal Audit (RBIA) implementation. The role of internal auditors, top management commitment, policy frameworks, training, and communication processes play an essential role in strengthening RBIA implementation. However, respondents reported challenges such as difficulties in determining audit procedures, lack of independence in performing tasks, and unmet expectations from audit report users. Recommendations to enhance RBIA implementation include improving user understanding, strengthening auditor performance, enhancing supervision, providing more effective training, and reinforcing organizational communication. The importance of top management commitment in internalizing strategic risk management principles is also emphasized as a key step toward RBIA effectiveness. In addition, proper training and effective communication are necessary to ensure successful RBIA implementation across local government agencies.