This study analyzes the effect of political connection and effectiveness of audit committee on audit fee. This study uses the sample of non-financial companies listed on the Indonesia Stock Exchange (IDX) in 2015-2017. They were take using a purposive sampling method. The total number of companies is 444 companies. The data were analyzed using SPSS 20 and the hypothesis testing was done using linear regression with a significance level of 5%. The F test indicates that the research model is stable and significant. The value of R square is 38.4%, indicating that there are other variables that can affect the model by 61.6%. The results of this study show that political connection has a significant positive effect on audit fee and the effectiveness of audit committee also has a significant positive effect on audit fee because audit committee wants a higher audit quality from the auditor.
Due to the increasing authority of local governments, a systematic monitoring and evaluation system is needed to measure performance achieved by a local government. From the financial side, the Local Government Financial Report (LKPD) shows the accountability of a local government. With the quality of financial statements and information in it, it is expected that the performance of local government can increase. The purpose of this research is to know the influence between audit opinion and the characteristics of local government represented by variable of level of local government wealth, level of dependency on central government, and regional expenditure on local government performance. Samples were conducted on 440 district / city governments in Indonesia in 2015. The data analysis technique used is multiple linear regression. Based on the test results found that the level of local wealth have a positive effect on the performance of local government. The level of dependence on the central government negatively affects the performance of local governments. While the variables of audit opinion and regional expenditure do not affect the performance of local government.
Audit opinion is an important information required by financial information users. This opinion could influence the decision made by the investors and other stakeholders. The research on the factors affecting audit opinion is still limited in public organization, especially in Central Government. Therefore, this study try to investigate the factors affecting the audit opinion in Indonesia Central Government. The study use the agency theory to explain what factor affecting the going concern audit opinion. By using 92 Ministry and Institutions in Central Government, data of 2012 financial report, and logistic regression. We find that prior audit opinion and audit lag as factors affecting the going concern audit opinion. In addition, these variables influence the audit opinion positively. However, the education background of leader and institutions size do not affect the going concern audit opinion. This research give the contribution to the practical and theoretical. Further, this research also after give some avenues for future research. Keywords: Institutions Size, Prior Audit Opinion, Education Background of Leader, Audit Lag, and Going Concern Audit Opinion
Local governments carry out internal audits to provide control over the activities of internal control in the implementation of governance is good, so that fraud can be prevented so that the performance of local government can be carried out adequately.This study aims to determine 1) the relationship between internal audit, internal control and fraud prevention, 2) the influence of internal audit, internal control and good government good governance on the prevention of fraud both simultaneously and parsial, 3) the influence of internal audit, internal control, good government governance, the prevention of fraud on the government's performance both simultaneously and parsial.Unit this study is all the provincial, regency / city in West Java and Banten with respondents Inspectorate West Java and Banten government and the State Audit Representation of West Java and Banten. Method of analysis using Path Analysis.These results indicate that 1) there is a positive relationship between internal audit, internal control and fraud prevention, 2) internal audit, internal control and good government governance affects both fraud prevention and partially simultaneously, 3) internal audit, internal control, good government governance, fraud prevention affects the performance of both local government and partially simultaneously. The contribution of this study describes the effect that the internal audit in the implementation of a consistent internal control for the government to realize good governance and prevent fraud, to improve local government performance on an ongoing basis. The implications of this study showed improved performance of local government for development in the areas of research interest in creating clean government.
The governmental obligation to promote the public interest through the implementation Good Government Governance or in other word a central issue presented by the government assuring that the government through her civil servants to represent and respond the interest of the citizenry. But there are many aspect of the civil servant that make it difficult to attain satisfactory level of Good Government Governance that could be proved by results of BPK RI audit on local government financial statement. This fact finding must be improved continuously.The research was aim to test and to analyze the influence of the government internal control system, the implementation of government accounting standards, the completion of the audit findings on the quality of local financial statements and its implications on Good Government Governance principles. The research was an explanatory research. The respondent of the research was a local government consist of Regional Governments, regencies and cities in West Java and Banten Province. The data was collected using questionnaire and interview technique follow by using descriptive analysis and path analysis. The result of the research show that: (1) government internal control system, the implementation of government accounting standard, and completion of the audit findings have positive influences towards the quality of local government financial statements; (2) government internal control system, the implementation of government accounting standards, completion of the audit findings and the quality of local government financial statements have positive influences on implementation of the Good Government Governance.
The purpose of this study is to investigate and analyze the efficiency and effectiveness of local government expenditure on education sector in districts and cities level of East Java, during the periods 2007-2014. Furthermore, this study will evaluate the impacts of local government expenditure, household expenditure for education, and regional product domestic bruto or (PDRB) on the educational outcomes, namely education index. Data Envelopment Analysis (DEA) is selected as the methodology for analyzing the efficiency of local government expenditure on educational outcome. The model assumes constant return to scale (CRS) and variable return to scale (VRS). Measurement of the effectiveness of government spending is done by using panel data regression. Data for supporting the analyses is panel data from 38 districts and cities in East Java for the periods of 2007 – 2014. The results show that government expenditure in educational sector is relatively inefficient. Government Expenditure for Education (PPP) has no significant impact on educational index, while Household expenditure for education (PPRT) and GRDP per Capita positive has significant impact on the Education Index (IP). This imply that government expenditure for educational sector is not effective improving educational index.
Financial distress is a condition that occurs before a company goes bankrupt, so before that happens, the company needs to take actions such as good corporate governance practices. The purpose of this research is to determine the effect of the audit committee, ownership structure, and CEO on financial distress in trading, service, and investment companies listed on the Indonesia Stock Exchange for the period 2015-2018. The analysis technique used is logistic regression analysis. This type of research is quantitative by using a sample of 25 companies determined through a purposive sampling technique. The results showed that the frequency of audit committee meetings had a significant and positive impact on financial distress, and institutional ownership had a significant and negative impact on financial distress. While the other variables include: audit committee size, audit committee competence, audit committee independence, managerial ownership, family ownership, government ownership, foreign ownership, block holder ownership, and CEO's gender do not have a significant impact on financial distress. Implications of the results in this study are considering the frequency of audit committee meetings and the percentage of institutional ownership in predicting financial distress that can be used by companies and potential investors.
The research was intended to examine: 1) the influence of implementation of the public sector audit, the competence of local government Apparatus and the Professionalism Of Internal Functional Controlling Agency toward implementation Good Government Governance/GGG. 2) the influence of implementation of the public sector audit, the competence of local government Apparatus and the Professionalism Of Internal Functional Controlling Agency toward performance of Local government accountability. 3) the influence of application of Good Government Governance/GGG toward Local Governmentperformance accountability. The research methods used in this research was the explanatory research. Sampling techniquesused was Proportionate Stratified Cluster Random Sampling. The samples obtained in this research was 57 Local Government Unit Agencies (SKPD). The primary data were collected by questionaires, the Reports of the Evaluation (LHE) on Performance Accountability in The Unit Of Local Infrastructure Of Riau Province were used for secondary data. Validity and reliability of the questionnaire was tested first before testing hypotheses was performed. The analysis technique used in this research was a Structural Equation Modelling (SEM) or variance-based component that was made famous by Partial Least Squares (PLS). Based on the results of data analysis and discussion, it was obtained the following research findings: 1) The significance level of 5% can be inferred implementation of the public sector audit, the competence of local government Apparatus and the Professionalism Of Internal Functional Controlling Agency significantly effect to the implementation of Good Government Governance/GGG. 2)The significance level of 5% can be inferred implementation of the public sector audit, the competence of local government Apparatus and the Professionalism Of Internal Functional Controlling Agency significantly effect to the Local Government accountability performance significantly. 3) The significance level of 5% can be inferred application of Good Government Governance/GGG significantly effect to the Local Government accountability performance.
AbstractIn the implementation of regional autonomy, the regional head is expected toimplement visionary and innovative leadership patterns to fulfill hisobligations in developing regions, providing quality services, and creatingprosperity of the local community. In this study, the sample used is limited tolocal governments in Sumatera and Java who conducted elections of regionalheads (Pilkada) in 2010 ie as many as 111 provinces, districts, and cities. Thedata used secondary data, namely the score of local government in rankingand performance status of local government, obtained from the website of theMinistry of Home Affairs; and Audit Opinion, as seen in the summary ofaudit report result by the Supreme Audit Board (BPK). The conclusions ofthis study are: 1) there is a difference between the performance of localgovernment in Sumatera and Java, led by the Head of Region entrepreneurand non-entrepreneur background based on score of local government indetermining the rank and status of local government administration; 2) Thereis no difference between the performance of local government in Sumatera andJava led by the head of region with entrepreneur and non-entrepreneurbackground based on audit opinion of Supreme Audit Board (BPK) on LocalGovernment Financial Report (LKPD)
Supervision is essentially an act of judging or testing whether something has been going according to a predetermined plan. With the supervision will be found that mistakes will eventually attempted repairs, the most important not to mistake happen again. Supervision is always required for all actions the central government and local authorities. Its main purpose is to avoid actions that harm the public interest, or at least to reduce as much as possible it happened. Supervision is more focused or focused on the evaluation and corrective actions to the results that have been achieved, with the intention that the proceeds according to plan. Therefore, the role of oversight agencies, in particular local government agency internal controls (Inspectorate) in the county / city in the course of carrying out the task of supervision of the machinery of government in the area of governance in order to realize good local governance, is crucial. Because the performance capabilities of internal oversight agencies also contribute to determine the successful management of local governance, since this institution has a range of supervisory duties are quite broad and has a strong position and strategic. This is because the Regional Inspectorate districts / cities in its duty to supervise not only the aspects of the use of financial / budget area, but his supervision more broadly is regarding the duties and functions, performance, and discipline region official. To realize this, the role of internal oversight agencies (Inspectorate) district / city, should be improved and optimized, so that local governance that can both manifestation.
The Inspectorate of Bantul District, and the Yogyakarta District Court) in the corruption case of Persiba Bantul grants. The calculation of the two government audit agencies was significantly lower than the amount settled by the court. There was also a different amount resulted from the calculation between BPKP and the inspectorate. These differences may affect public trust on government audit agencies in supporting corruption eradication. This study used a qualitative method with a case study approach. The results show that there are differences in calculating the state financial loss due to two factors: components of the calculation and recognition of amounts of the loss by BPKP and the inspectorate. Specificially, differences are due to access to audit evidences and new facts, assigned time of auditors, and human factor. The court seems to have advantages regarding to access audit evidence and other information and therefore, the court could set a higher amount of the state loss. This study contributes to having better understanding of calculating the state financial loss. Keywords: counting losses to the country, corruption case, losses to the country, thematic analysis
The development of audit opinion obtained by the government of regency/city at Lampung Province to date suggests a positive development, with unqualified opinion indicating the highest opinion from the BPK-RI. This audit opinion results show significant increase for last few years. Further, there are some local governments that have been for more than three years in a row obtaining the opinion of unqualified opinion. However, the development of a positive audit opinion of the local government is not followed by the development of a positive level of welfare. In fact, the Government of Lampung Province is still ranked the fourth lowest in Sumatra as the poorest province. So the audit opinion which is attached to the local government, in particular the perceived unqualified opinion for this community is not prosperous. This research was conducted on the entire local government in Lampung Province for the period of 2011-2015 with the method of comparative analysis, with the data related to the Human Development Index (HDI) of each District/City Government were obtained from BPS Lampung Province and the data in the form of the audit opinion are sourced from the BPK-RI. The results showed that not all local government obtain unqualified opinion automatically related to the increase of the level of the welfare of the community becomes. For this reason, the local government obtaining the unqualified opinion in the financial management should also improve the welfare of the community through an increase in the budget for education, health and other sectors that directly touch on the improvement of the welfare of the community. It is expected the government succeeded not only in financial management but also in development. Keyword: Adverse, Disclaimer, welfare of the community, unqualified opinion, qualified opinion
Efforts to empower the poor communities in urban areas are still very urgent at this time. Although the number of poor communities in urban areas is decreasing, the rate is not significant. Empowerment needs to place poor urban as the main actors and the government as facilitators and motivators. This research aims to provide a scientific description of the causes of poverty and the empowerment model for the poor urban in Makassar city, South Sulawesi Province, Indonesia. The research method used is qualitative with a narrative strategy. The research participantss were as many as five low-income households in an urban area. The data collection technique used in-depth interviews with participants. Field observations were also made related to participants' social life and literature studies to strengthen the interview and observation data. Data analysis takes three ways: data reduction, data display, and verification/conclusion drawing. The result showed three factors that cause urban poverty: natural, cultural, and structural. The empowerment model was implemented by understanding the problems encountered, developing problem-solving strategies, understanding the importance of making planned changes, and strengthening the urban poor's capacity. ; Upaya pemberdayaan masyarakat miskin di perkotaan masih sangat mendesak saat ini. Meski jumlah masyarakat miskin di perkotaan menurun, angka tersebut tidak signifikan. Pemberdayaan perlu menempatkan masyarakat miskin perkotaan sebagai aktor utama dan pemerintah sebagai fasilitator dan motivator. Penelitian ini bertujuan untuk memberikan gambaran ilmiah tentang penyebab kemiskinan dan model pemberdayaan masyarakat miskin perkotaan di kota Makassar, Provinsi Sulawesi Selatan, Indonesia. Metode penelitian yang digunakan adalah kualitatif dengan strategi naratif. Partisipan penelitian adalah sebanyak lima rumah tangga berpenghasilan rendah di wilayah perkotaan. Teknik pengumpulan data menggunakan wawancara mendalam dengan partisipan. Pengamatan lapangan juga dilakukan terkait kehidupan sosial partisipan dan studi literatur untuk memperkuat data wawancara dan observasi. Analisis data dilakukan dengan tiga cara yaitu reduksi data, penyajian data, dan verifikasi / penarikan kesimpulan. Hasil penelitian menunjukkan tiga faktor penyebab kemiskinan perkotaan: alamiah, budaya, dan struktural. Model pemberdayaan dilaksanakan dengan memahami permasalahan yang dihadapi, menyusun strategi pemecahan masalah, memahami pentingnya melakukan perubahan yang terencana, dan memperkuat kapasitas masyarakat miskin perkotaan.
Supervision is not just a mere supervision, especially if it's just to find fault. Supervision starts from planning, implementing, reporting and finally follow up from the results of supervision. This research was conducted to analyze the Follow-up of Supervision Results conducted by the Regional Inspectorate of Indramayu Regency. Follow-up to Supervision Results are reviewed from the APIP policy aspects of the implementation of completion of Oversight Results Follow-up, audited responses to audit findings, causes of audit findings, audited responses to delays in Follow-up Monitoring Results. More in this study wants to examine the steps of policy makers in completing the findings of the Audit Results Report.The Examination Result Report contains findings, conditions, causes, consequences and recommendations for recommendations that must be followed up by the Regional Work Unit (SKPD) which is examined to correct errors in the implementation of the administration of the general government and government implementation affairs that occur in the SKPD examined. The follow-up itself aims to improve and improve the quality of good and clean governanceFactors that cause low or not yet achieved completion of follow-up include lack of leadership commitment or change of leadership in the work unit / work unit, so that new leaders are less concerned about the follow-up of the results of supervision because they feel it is not their responsibility. The cause of the findings (disobedience to the legislation and the weakness of the internal control system) and the delay in following up on the findings of the examination include internal factors and external factors. Internal factors include leadership and subordinate human resources, lack of subordinate human resource capabilities and leadership managerial abilities. An external factor is the third party's lack of discipline regarding the findings of the examination and the existence of social problems in the community.In order to resolve the follow-up to the audit results, it is necessary to conduct direct monitoring efforts, namely by reviewing directly to the audited work unit / work unit accompanied by a value test of the findings of the audit completed with the Follow-Up Update Minutes. While the indirect update is carried out based on a value test of supporting documents / evidence submitted by the work unit / work unit as a follow-up to the auditor's recommendations.
Government Internal Auditor Apparatus (GIAA), as a professional organization of government internal auditors, consists of Indonesia's National Government Internal Auditor (BPKP) and Inspectorate on the level of local government and has a very important role in creating clean, fair, transparent, and accountable governance. Nevertheless, in running its responsibilities and functions, GIAA often faces audit conflicts that lead to a dilemma situation. The audit conflict will become an ethical dilemma when GIAA faces ethical and unethical choices that determine an auditor's decision-making (Windsor et al., 1995). GIAA as a professional organization is required to be able to make appropriate conclusion from the audit findings based on the applicable code of ethics in the constitution and profession. Ethical decision is a publicly acceptable conclusion, both legally and morally ( Jones, 1991; Trevino, 1986). Several previous studies suggest that there are significant individual and situational factors that influence a person in making decisions ethically (Trevino, 1986). The individual factor that influences one's determination in facing ethical dilemmas is spiritual and ethical orientation, whereas the situational factor that supports in ethical decision-making is personal ethical judgment. Based on the aforementioned explanation, this study aims to examine the effect of ethical orientation on ethical decision, either directly or through ethical judgement at GIAA of Financial and Development Supervisory Board (BPKP) and Inspectorate East Java Local Government. Test results show that ethical orientation has a significant positive effect on ethical decision; ethical orientation has a significant positive effect on ethical judgment; ethical judgment has a significant positive effect on ethical decision; and ethical judgment mediates the relationship between ethical orientation and ethical decision.
