The Follow Up of Auditing Results, Accountability of Financial Reporting and Mediating Effect of Financial Loss Rate: An Empirical Study in Indonesian Local Governments

Abstract

This study aimed to analyze the effect of the follow-up of financial investigation results on the financial reporting accountability and to examine the influence of follow-up of financial investigation on the level of financial losses. This research was conducted in all the municipalities and cities in Indonesia by purposive sampling method from the period of 2011-2014, with the number of observations as much as in 1152. Data analysis was performed with the Structural Equation Model (SEM) with Warp-PLS Program 5.0 and Sobel test method to test the mediating variable. The results showed that follow-up of financial investigation reduces the level of financial losses, thereby increasing the accountability of local government financial reporting.

Pengaruh Ukuran Pemerintah Daerah, Tingkat Kekayaan Daerah, Tingkat Ketergantungan Daerah, Belanja Modal dan Temuan Audit BPK Terhadap Akuntabilitas Kinerja Pemerintah Daerah (Studi Pada Pemerintah Kabupaten/Kota di Provinsi Jambi)

“…Menurut Mustikarini dan Fitriasari (2012) Ukuran Pemda yang mana diproksikan dengan total asset berpengaruh secara signifikan terhadap kinerja pemda, sejalan dengan penelitian Sutaryo dan Suharyanto (2016) total asset juga mempengaruhi akuntabilitas kinerja pemda. Sedangkan penelitian Muhammad Din et al (2017) menyatakan total asset tidak berpengaruh terhadap akuntabilitas pelaporan keuangan pemda. Pemerintah daerah juga memiliki sumber terbesar penerimaan yaitu berasal dari pendapatan salah satunya ialah pendapatan asli daerah.…”

“…Tingkat kekayaan berpengaruh signifikan positif terhadap kinerja pemerintah daerah. Muhammad Din et al (2017), Hasil penelitiannya menunjukkan bahwa tindak lanjut hasil pemeriksaan keuangan dapat mengurangi tingkat kerugian keuangan sehingga meningkatkan akuntabilitas pelaporan keuangan pemerintah daerah. Dengan demikian, hasil pemeriksaan (temuan audit) berpengaruh positif terhadap akuntabilitas pelaporan keuangan pemerintah daerah.…”

Incentive Function of Audit Opinion for the Increase of Regional Operational Expenditure and Own-Source Revenues Through Sensitivity Analysis in Indonesia

“…Audit opinion on regional government financial statements is assumed to function as the basis of legitimacy provided by parties with an interest in the regional government, especially the local community (Power, 2003;Din et al, 2017;Suwanda, 2015;Gaspar & Mkasiwa, 2015). The synchronization between audit opinion with the expectations of the community will have an impact on increasing community resources given to the regional government, especially in the form of regional taxes and regional retribution.…”

Interactions of Financial Assistance and Financial Reporting Competency: Evidence From Local Government in Papua and West Papua Indonesia

“…Therefore, the understanding of accounting by the apparatus and the utilization of regional financial accounting information systems can improve the quality of local government financial reports (Yuliani et al 2010). The role of apparatus competency, good use of information technology and readiness of human resources can improve financial accountability and the accuracy of financial reporting (Winidyaningrum and Rahmawati, 2010;Andriani, 2010;Setiyawati, 2013;Rahayu et al, 2014;Din et al, 2017). According Choirunisah (2008), Napitupulu et al (2018) quality of local government financial statements are influenced by competence human resources as well as the Government Accounting Standards.…”