Quality of Local Government Financial Reports in Indonesia from the Perspective of Reporting, Monitoring and Examination Entity

Authors

Keywords:

Opinion, unqualified (WTP), Qualitative Characteristics, Quality of Financial Statements

Abstract

The purpose of this research is to see and analyze the qualitative characteristics of local government financial reports from the perspective of the Reporting Body (OPD), Internal Supervisory Agency (Inspectorate) and External Supervisory Agency (BPK-RI) in North Sumatra Province. The population of this study was all Regional Apparatus Organizations (OPD), Inspectorates and Representatives of the The Audit Board of the Republic of Indonesia (BPK RI) Representative of the Province of North Sumatera. The sample for this research was all OPD, Level One Inspectorate and Representatives of the Supreme Audit Board of the Republic of Indonesia (BPK RI) of North Sumatra Province amounted to 320 samples. This research is quantitative. Data collection techniques using a questionnaire. Data analysis techniques used descriptive analysis and t-test to compare statements or responses from OPD, the Inspectorate and the The Audit Board of the Republic of Indonesia (BPK RI) Representative of the Province of North Sumatera. The results of the study indicate that there are differences of views between the Regional Apparatus Organizations (OPD), the Inspectorate of North Sumatra Province and the Supreme Audit Agency of the Republic of Indonesia (BPK RI) Representative of North Sumatra Province regarding the financial quality of regional financial reports in terms of the qualitative characteristics of local government financial reports. This study also concludes that in addition to the four qualitative characteristics according to Government Regulation of the Republic of Indonesia Number 71 of 2010, indicators of compliance with regulations also improve the quality of local government financial reports.Keywords: Relevant; reliable; comparable; understandable; obey the rules

Downloads

Published

2023-11-01

Issue

Vol. 20 (2023): ASIAN JOURNAL OF ACCOUNTING AND GOVERNANCE

Section

Articles

License

Authors who publish with this journal agree to the following terms:
  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).