THE EFFECT OF BUDGETS’ PROPORTION AND NON-FINANCIAL FACTORS ON THE AUDIT RESULTS OF LOCAL GOVERNMENTS’ FINANCIAL STATEMENTS IN INDONESIA

https://doi.org/10.22146/jieb.15288

Nurdiono Nurdiono(1*), Slamet Sugiri(2), Abdul Halim(3), Gudono Gudono(4)

(1) Universitas Lampung
(2) Universitas Gadjah Mada
(3) Universitas Gadjah Mada
(4) Universitas Gadjah Mada
(*) Corresponding Author

Abstract


Local governments’ financial statements that obtain unqualified opinion until the end of 2011 were still relatively few in number. This study aims to empirically examine the effect on the audit results of the financial statements of local governments in Indonesia of the budgets’ proportion, the effectiveness of the internal audit, the follow-up to the Supreme Audit Board’s findings, the Supreme Audit Board’s opinions from earlier periods, and the competence of the available human resources to understand the audit results of the Supreme Audit Board. Budget management has become very important since it lays out a detailed plan for the expenditure and revenue of the local governments, so that it can be accountable to the public.

This study used a sample of 434 Indonesian Local Governments’ financial statements of 2011 and a logistic regression analysis. This study used primary and secondary data to uncover the phenomena that the local governments’ financial statements which received an unqualified opinion from the Supreme Audit Board were still relatively few in number. The results of this study showed that the budgets’ proportions of local governments are negatively significant in affecting the audit results of the financial statements of the local governments. The Supreme Audit Board’s opinions from earlier periods positively influenced the audit results of the financial statements of local governments. Whereas the variables of the effectiveness of internal controls, the follow-up to the Supreme Audit Boards’ findings, and the competence of the human resources do not significantly influence the audit results of the financial statements of local governments. The results of this study can contribute both theoretically and practically to the quality of the local governments’ financial statements.

Keywords: budgets’ proportion, human resources, competency, opinions, audit quality. 


Keywords


budgets’ proportion, human resources, competency, opinions, audit quality.

Full Text:

PDF



DOI: https://doi.org/10.22146/jieb.15288

Article Metrics

Abstract views : 2291 | views : 2860

Refbacks

  • There are currently no refbacks.




Copyright (c) 2016 Journal of Indonesian Economy and Business



Journal of Indonesian Economy and Business

Journal

Editorial Team
Focus and Scope
Peer Review Process
Publication Ethics
Screening for Plagiarism

Authors

Author Guidelines
Submission Guidelines
Online Submissions
Copyright Notice
Privacy Statement
Author Fees

Download

Author Pack
Submission Form & Manuscript Template

 

Reviewer

Reviewer Guidelines
Reviewer Acknowledgement

 

Reader

General Search
Achieves
Author index
Title index

 

 

The Journal of Indonesian Economy and Business (print ISSN 2085-8272; online ISSN 2338-5847) is published by the Faculty of Economics and Business Universitas Gadjah Mada, Indonesia. The content of this website is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License

© 2019 Journal of Indonesian Economy and Business 
 Visitor Statistics