scholarly journals Transparency of local government in Indonesia

2018 ◽  
Vol 3 (1) ◽  
pp. 123-138 ◽  
Author(s):  
I Made Pradana Adiputra ◽  
Sidharta Utama ◽  
Hilda Rossieta
Keyword(s):  
Local Government ◽  
Financial Reporting ◽  
Local Governments ◽  
Financial Statements ◽  
Political Environment ◽  
Content Type ◽  
Audit Opinion ◽  
Government Response ◽  
Positive Effect

Purpose The purpose of this paper is to provide empirical evidence about the influence of the size of local government, the quality of local government financial statements, the level of local government response to the disclosure of financial information and the local political environment on the transparency of local government in Indonesia. Design/methodology/approach The study sample consisted of 34 regional governments (provinces) in Indonesia in 2016, using purposive sampling and multiple regression analysis. Findings The results showed that the quality of financial reporting through the audit opinion and political environment have a significant positive effect on the transparency of local government in Indonesia. On the other hand, the size of the local government and local government response rate on the regulation do not affect the transparency of local government in Indonesia. Originality/value The agency, legitimacy and institutional theory have an important role in the underlying local government transparency practices in Indonesia. The results of this study should be used as the basis of thought and study to determine the factors that affect the performance of local governments from the financial and non-financial aspects.

scholarly journals Financial statements disclosure on Indonesian local government websites

2019 ◽  
Vol 4 (1) ◽  
pp. 112-128
Author(s):  
Wahyudin Nor ◽  
Muhammad Hudaya ◽  
Rifqi Novriyandana
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Financial Statements ◽  
Education Level ◽  
Content Type ◽  
Audit Opinion ◽  
Level Of Education ◽  
The Public ◽  
Government Websites

Purpose The purpose of this paper is to examine the extent to which audit opinion, audit findings, follow-up audit recommendations, level of education, level of welfare and heads of local governments’ commitment influence the disclosure of financial statements on the official website of local government. Design/methodology/approach The data of this research comprise 68 financial statements during the period 2015–2016 collected from 34 local governments across Indonesia by employing the census method. The data then are analyzed using logistic regression. Findings The results of this study show that audit opinion has a positive significant influence on the disclosure of financial statements on local government websites in Indonesia, while the audit findings, follow-up audit recommendations, level of education, level of welfare and heads of local governments’ commitment have no significant influences on the disclosure of financial statements local governments’ websites across Indonesia. Originality/value The study contributes to the public sector accounting research by enhancing our understanding to the disclosure of financial statements on local government websites.

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

2019 ◽  
Vol 11 (1) ◽  
pp. 1
Author(s):  
Pilipus Ramandei ◽  
Abdul Rohman ◽  
Dwi Ratmono ◽  
Imam Ghozali
Keyword(s):  
Local Government ◽  
Financial Reporting ◽  
Local Governments ◽  
Financial Statements ◽  
Financial Assistance ◽  
Financial Reports ◽  
Additional Information ◽  
West Papua ◽  
The Republic

Good local government financial statements are financial statements according to the qualitative characteristics of financial statements, which are relevant, reliable, comparable and understandable. However, the phenomenon shows that there are still weaknesses in financial reporting in several local governments in Indonesia, especially in the provinces of Papua and West Papua based on the findings of the Audit Board of the Republic of Indonesia (IHPS II BPK, 2017). The purpose of this study is to obtain empirical evidence of the role of moderating financial assistance and apparatus competency on the quality of government financial reports. Explanation of the relationship between variables was using an institutional theory perspective. The survey was conducted in 2018 on 42 Local Governments in Papua and West Papua. Methods of processing and analyzing data were using SEM-PLS with WarpPLS 6.0 statistical software. The results of the apparatus competency research have a positive effect on the quality of financial statements. A financial resistance positively strengthens the influence of apparatus competency on the quality of local government financial reports. Thus, efforts to overcome the presentation of quality financial statements require competent apparatus through the existence of financial assistance policies. Limitations of the study are the method of collecting data using a questionnaire and that it is very possible for the bias to occur. Therefore, efforts to achieve better results need to be accompanied by an interview method in order to obtain additional information as a comparison of respondents' answers; 2) the determination coefficient value of R- square is 0.41 or 41% indicating that there are still 0.59 or 59% variability in the quality of Local Government Financial Statements (LKPD) which can be explained by other variables outside the research model. 

scholarly journals Analysis of Audit Opinion of Financial Statements From State Institutions: Indonesia Empirical Study, Period 2012-2017

2020 ◽  
Vol 11 (5) ◽  
pp. 150
Author(s):  
Fransisca Listyaningsih Utami ◽  
Yananto Mihadi Putra ◽  
Putri Renalita Sutra Tanjung ◽  
Lucky Nugroho
Keyword(s):  
Local Government ◽  
Empirical Study ◽  
Financial Reporting ◽  
Financial Statements ◽  
Financial Reports ◽  
Audit Opinion ◽  
State Institutions

This study aims to compare the results of BPK's opinion on the financial statements of state institutions against the quality of implementation of state institutions during 2012-2017. The results showed that the quality of LKKL presentation had improved throughout the 2012-2017 period. Improving the quality of financial reporting of state institutions can be seen from the increasing number of entities that obtain Unqualified Opinion and the tendency to reduce the number of the institution that obtain Qualified Opinion and Disclaimer opinions. Improving the quality of financial reporting shows that local government entities have been able to present their financial reports correctly and in accordance with applicable principles. In addition, good financial reporting can also be an indication that the entity has a good performance in accordance with the target that has been committed.

scholarly journals OPINI AUDIT DAN PENGUNGKAPAN ATAS LAPORAN KEUANGAN PEMERINTAH KABUPATEN SERTA KAITANNYA DENGAN KORUPSI DI INDONESIA

ETIKONOMI ◽  
2015 ◽  
Vol 13 (1) ◽  
Author(s):  
Rini Rini ◽  
Adhariani Sarah
Keyword(s):  
Local Government ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Quality Of Reporting ◽  
Audit Opinion ◽  
Content Analysis Method ◽  
The Relationship

The study examined the relationship between the areas of financial reporting quality proxy by the audit opinion of the financial statements and the disclosure of local government (LKPD) districts, as well as the level of corruption in Indonesia. Study is qualitative and descriptive content analysis method (content) to process the data. The results of this study indicate that the quality of reporting of financial statements has increased as indicated by the improvement in the audit opinion above LKPD district in Indonesia. The second finding shows there is no link between the financial statement disclosures local government district with the opinion given by the BPK. The third findings showed case of corruption in Indonesian is increasing. The findings of the fourth, the disclosure of financial statements and audit opinions district has associated with the level of corruption in IndonesiaDOI: 10.15408/etk.v13i1.1875

scholarly journals PENGARUH SISTEM PENGENDALIAN INTERN DAN SISTEM AKUNTANSI KEUANGAN DAERAH TERHADAP KUALITAS LAPORAN KEUANGAN PEMERINTAH

2017 ◽  
Vol 12 (2) ◽  
Author(s):  
Novtania Mokoginta ◽  
Linda Lambey ◽  
Winston Pontoh
Keyword(s):  
Control System ◽  
Local Government ◽  
Internal Control ◽  
Local Governments ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting System ◽  
System Quality ◽  
Internal Control System

Application of Internal Control System and Regional Financial Accounting System in management of local government financial statements is a very important thing. This financial statements of local governments must meet the following characteristics : relevant, reliable, comparable, and understandable.  The purpose this study to examine the influence of the Internal Control System,Regional Financial Accounting System on the quality of goverment financial statements. The population in this study are all working in BPKAD Bolaang Mongondow Utara.  The sample in this study is the staff / employees of the financial part of the respondents were 30 respondents. The samples were selected by using a purposive samplingmethod. Data was collected by distributing questionnaires to the respondents directly concerned. Technical analysis of the data used is multiple regression with SPSS 22. The result showed that : the Internal Control System has a significant effect on the quality of government financial statements and the Regional Financial Accounting System has a positive significant effect on the quality of goverment financial statements.Keywords : Internal Control system, Regional finsncisl accaounting system, quality of goverment financial statements.

The efficiency of corporate boards and firms’ audit fees: the case of the FTSE financial institutions

2018 ◽  
Vol 30 (3) ◽  
pp. 297-317 ◽  
Author(s):  
Rabih Nehme ◽  
Mohammad Jizi
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Statements ◽  
Audit Fees ◽  
Governance Structure ◽  
Negative Consequences ◽  
Reverse Causality ◽  
Content Type

Purpose The quality of financial reporting for the financial institutions is vital for the public, as the negative consequences of manipulated financial statements will not only affect shareholders but also the regulators’ reputation and the society at large. The purpose of this paper is to assess the association between different corporate governance mechanisms and their impact on audit and reporting quality. The gender factor is introduced from a diverse boards’ perspective to highlight any impact of female presence on the quality of financial statements. Design/methodology/approach The authors examine a sample of financial institutions listed on the FTSE-350 index for the years 2011 to 2015. The financial sector has its own and different regulations, and financial reporting framework and auditors are expected to behave into more scrutiny. Bloomberg database is used to obtain governance and financial data, while firms’ annual reports are used to collect audit fees and audit committee information. A panel data regression is used to test hypotheses. The authors also control for unobservable heterogeneity, reverse causality and endogeneity. Findings The results suggest that boards with larger size and higher independence pay higher audit fees to enhance the monitoring capacity and protect the wider group of stakeholders. The results also show that women on boards are likely to reduce the risk of manipulated financial statements, as women are more inclined toward truthfulness, cautiousness and conservatism. In addition, the reported results show that audit committees with more independent members are more inclined toward obtaining higher quality audit to enhance firm’s reporting quality. Originality/value Given the recent governments’ intervention to avoid financial institutions’ negative impact on the economy, this study is relevant and provide policymakers insights into the existing relationships between audit fees and financial institutions’ governance structure.

Independent monitoring and review functions in a financial reporting context

2017 ◽  
Vol 25 (2) ◽  
pp. 268-290 ◽  
Author(s):  
Albertus Louw ◽  
Warren Maroun
Keyword(s):  
Empirical Evidence ◽  
Financial Reporting ◽  
Financial Statements ◽  
Reporting Standards ◽  
Content Type ◽  
Reporting Practices ◽  
Financial Reporting Standards ◽  
Corporate Reporting ◽  
Independent Review

Purpose Independent monitoring and review bodies have become a defining feature of the professional accounting and auditing space. Exactly how these institutions function to improve the quality of the corporate reporting or audit function is, however, poorly understood. Consequently, the purpose of this study is to provide empirical evidence on how the activities of an independent review process functions on individual preparers, auditors and those charged with an organisation’s governance. Design/methodology/approach The study is an interpretive one. Data are collected using semi-structured interviews and analysed by the researchers. Findings The review function performed by an independent body results in companies being more aware of the need for compliance with the applicable financial reporting standards. Independent reviews also act as a process of examination which functions at the level of the individual accountant, auditor or director. These subjects of regulation report an added sense of accountability to their respective employer and profession and a heightened awareness of the need for high-quality corporate reporting. Research limitations/implications Independent monitoring and review bodies are not just symbolic displays which reassure uninformed users that the quality of financial statements are sound. Examination of financial statements and identification of non-compliance with the applicable financial reporting standards drive actual changes in reporting practices. Originality/value This study complements the predominantly positivist financial reporting research which does not deal with precisely how the work of regulatory bodies operates on the subjects of regulation. The research makes an important practical contribution by providing empirical evidence in support of laws and regulations which promote independent review of the accounting profession.

scholarly journals Factors Affecting Regional Government Financial Statements: Evidence from Indonesia

2020 ◽  
Vol 9 (2) ◽  
pp. 89
Author(s):  
Bambang Jatmiko ◽  
Dadang Irawan ◽  
Zaky Machmuddah ◽  
Titi Laras
Keyword(s):  
Information Technology ◽  
Local Government ◽  
Financial Reporting ◽  
Internal Control ◽  
Financial Statements ◽  
Financial Supervision ◽  
Regional Government ◽  
Process Data ◽  
Quality Of Information

The purpose of this study is to test and empirically prove the influence of human resource capacity, the application of government accounting standards, the use of information technology, internal control systems, and financial supervision on the quality of information on local government financial statements. The problem in this study is that the quality of information on local government financial reports is still uneven, and the level of compliance with laws and regulations regarding local government financial reporting is lacking. The standards have not been implemented consistently. This research method uses quantitative data by distributing questionnaires. The population in this study is the Regional Government of Brebes Regency with a sample of 40 SKPD offices, and the determination of the sample is based on purposive sampling with the criteria for officials of each SKPD who have authority over the recording, preparation, and reporting of local government finances. The application used to process data in SPSS 25. The method used is the classical assumption test, hypothesis testing, and multiple regression analysis. The results of this study indicate that the Capacity of Human Resources and the Government's Internal Control System has a positive effect on the Quality of Information on the Regional Government's Financial Statements. Application of SAP, Utilization of Information Technology, and Financial Oversight do not affect the Quality of Information on Regional Government Financial Statements.

scholarly journals PENGARUH ETIKA KEPEMIMPINAN, FUNGSI BADAN PENGAWAS, TINGKAT PEMAHAMAN AKUNTANSI TERHADAP KUALITAS PELAPORAN KEUANGAN LPD DI KOTA DENPASAR

2021 ◽  
Vol 5 (1) ◽  
pp. 23-34
Author(s):  
Desak Ayu Sriary Bhegawati ◽  
Ni Nyoman Ari Novarini
Keyword(s):  
Financial Reporting ◽  
Work Experience ◽  
Employee Training ◽  
Financial Statements ◽  
Customary Law ◽  
Microfinance Institutions ◽  
Financial Reports ◽  
Leadership Ethics ◽  
Positive Effect

Abstract Village Credit Institutions are microfinance institutions that reflect the existence of a community in society based on the principles of Balinese customary law. There are 4 problems with the hypothesis of this study, namely leadership ethics has a positive effect on the quality of financial reporting, the function of the Supervisory Body has a positive effect on the quality of financial reporting, Work experience has a positive effect on the quality of financial reporting. The level of accounting comprehension has a positive effect on the quality of financial reporting. Sampling of this study used saturated sampling with all 35 LPD units studied in Denpasar City. The analytical tool used in this research was Multiple Linear Regression. , the results of the study showed that Leadership Ethics, the function of the supervisory body, and the level of accounting understanding have a positive effect on the quality of financial reports at LPDs in Denpasar City. While work experience has no effect on the quality of financial reports at LPDs in Denpasar City. Improving the performance of LPD managers, especially the chairman, must prioritize leadership ethics. In addition, the function of the supervisory body is always improved and refers to procedures according to the rules for presenting financial statements. Accounting understanding also continues to be improved. Employee training continues to be improved because it provides more work roles for the LPDs so that the performance of the Denpasar City LPD continues to increase. Keyword : Quality of Financial Statements, Leadership Ethics, Supervisory Body Functions,  Level of Accounting Understanding

scholarly journals KUALITAS LAPORAN KEUANGAN PEMERINTAH DAERAH DI INDONESIA : LITERATURE REVIEW

2021 ◽  
Vol 12 (2) ◽  
pp. 157-171
Author(s):  
Farah Faadillah Herindraningrum ◽  
Indrawati Yuhertiana
Keyword(s):  
Local Government ◽  
Literature Review ◽  
Financial Reporting ◽  
Local Governments ◽  
Quantitative Research ◽  
Audit Quality ◽  
Accounting System ◽  
Financial Reports ◽  
Factors Affecting

This literature review aims to map research on the quality of local government financial reports in Indonesia and to see how the role of accountability and transparency factors in the quality of local government reports in Indonesia. This research method uses SLR (Systematic Literature Review). Analysis of data by mapping 28 selected journals from 2015 to 2020 in the Google Scholar database. The results of this research show factors affecting the quality of the Indonesian government's financial reports, namely: human resource competence, Information Technology, Accountability, Transportation, Audit Quality, Accounting System, Accounting Procedure, Accounting Standards, and Internal Management with quantitative research type, Qualitative, literature review, and mix method. The most frequently investigated factor is the competence of human resources as much as 15 times the type of research that is widely used is quantitative research as much as 20. This research also shows that the accountability and transparency of financial reporting have a significant effect on the quality of financial reporting of local governments in Indonesia.

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