Analysis of Factors Affecting Audit Opinion of Supreme Audit Agency (BPK) on the Fairness of Local Government Financial Reports in NTT

Abstract

The Local Government Financial Reports (LKPD) is a form of accountability report that needs to be audited by an independent external auditor (BPK) to realize and apply the principles of transparency and accountability. The results of the audit by BPK are expressed in the form of an opinion, namely the auditor's professional statement regarding the fairness of the financial information in the Financial Reports. The increase or decrease in the level of BPK's audit opinion has not been considered, especially in terms of scientific development related to the influence of the weaknesses of the Internal Control System (SPI) and the level of compliance with statutory provisions. This research aims to identify the effect of the weakness of the internal control system (SPI), statutory provisions, and compliance with government accounting standards (SAP) on the fairness of local government financial reports in NTT. This quantitative research will use inferential statistical analysis with the help of SPSS software. Quantitative analysis techniques will be used to examine the relationship between the dependent variable and the independent variable. Data will be analyzed using ordinal logistic regression.