Tanggal masuk : 21-8-2020 This study examines the mediating effect of audit opinion on the relationship between local government financial performance and the Human Development Index (HDI) by implementing path analysis. The results showed that audit opinion does not mediate the relationship between Local Own-Source Revenue (PAD) effectiveness and HDI. Audit opinion partially mediates the influence of Regional Financial Independence on HDI, while it perfectly mediates the relationship between Activity Ratio and HDI. This indicates that local government financial performance must be followed by accountable management to accelerate HDI.

This research aims to analyze the impact of Coronavirus Disease (Covid-19) on the accounting practices in banks associated with Indonesian Financial Accounting Standards (PSAK) 71 – Financial Instrument, particularly the allowance for impairment losses (CKPN) to respond to the Indonesian Financial Service Authority's Regulation (POJK) Number: 11/POJK.03/2020 concerning credit restructuring program and quality assets assessment. The research methodology is triangulation. This study reveals that the restructuring program helps banks from a significant jump of weak quality credits. Banks need to analyze the recovery rate of debtors as a basis for the stage of PSAK 71 with the Expected Credit Loss approach. The higher the CKPN, the smaller the net income. Besides, a tremendous amount of CKPN will pressure the Capital Adequacy Ratio (CAR). Therefore, shareholders should increase the capital, or the Indonesian Financial Service Authority (OJK) forces the bank(s) into a merger or acquisition.