PurposeThis study aims to analyze the effect of audit findings and audit recommendations follow-up on the quality of financial reports and the quality of public services in the context of applying accrual accounting systems to local government in Indonesia. This study also examines whether the quality of the financial report affects the quality of public services.Design/methodology/approachThis study employed cross-sectional regression using data from 1,437 observations from 491 districts/cities for 2014–2016. The data illustrates the conditions prior to the adoption of the accrual accounting system (2014), the initial year of application/transition period (2015) and the second year of the expected accrual accounting system (2016).FindingsThe results of the study indicate that, in general, the quality of financial reports affects the quality of public services. Regarding the implementation of audits in the public sector, it is also found that audit findings have a negative impact on the quality of financial report and the quality of public services, while audit recommendations follow-up plays a positive role in improving the quality of financial report and the quality of public services.Research limitations/implicationsThe implication of the results of this study is closely related to the efforts to realize the ultimate goal of the recent government reforms. In order to increase the quality of public services in the era of higher report requirements through an accrual accounting system, the government should focus on the quality of financial reports, audit findings and the audit recommendations follow-up.Originality/valueThis study provides new insight on the link between the public sector auditing and the quality of accounting in accrual implementation context and the quality of public services.

ABSTRAKIndonesia merupakan negara yang menerapkan peraturan rotasi audit (akuntan publik) yang bertujuan untuk meningkatkan kualitas audit. Penelitian ini bertujuan untuk menguji pengaruh rotasi audit dan lamanya mengaudit terhadap kualitas audit. Kualitas audit diukur dengan empat kualitas laba (predictive value, timeliness, representational faithfulness dan netralitas). Sampel penelitian adalah perusahaan-perusahaan yang terdaftar di Bursa Efek Indonesia selama periode sebelum regulasi rotasi audit diberlakukan yaitu tahun 1999-2001 dan periode paska regulasi yaitu tahun [2004][2005][2006][2007][2008]. Hasil pengujian membuktikan bahwa pada periode sebelum regulasi, tidak ada pengaruh lamanya mengaudit terhadap kualitas audit. Namun setelah periode regulasi, lamanya mengaudit memiliki hubungan convex dengan kualitas audit dari sudut pandang netral sampai dengan timeliness. Penelitian ini juga menemukan bahwa secara umum tidak ada pengaruh rotasi akuntan publik dengan kualitas audit, 2 dari 8 persamaan regresi menunjukkan rotasi audit menurunkan kualitas audit pada periode sebelum dan sesudah regulasi. Spesialisasi memiliki pengaruh positif terhadap kualitas audit. Kewajiban untuk melakukan rotasi audit tidak cukup efektif untuk meningkatkan kualitas audit.Kata kunci: Audit Quality, Audit Rotation, Audit Tenure, Specialization, Quadratic model. (1999)(2000)(2001) to period after the regulation (2004)(2005)(2006)(2007)(2008) ABSTRACT Indonesia is a country that not only applied the rule of audit partner rotation, but also audit firm rotation with aim to improve the audit quality. This research tries to investigate the impact of audit firm audit rotation and audit tenure to the audit quality. The audit quality is measured by four earning quality (predictive value, timeliness, representational faithfulness and neutrality perspective). The sample data are the public listed companies from period before the regulation

The purpose of this study is to investigate whether, in a case study of Indonesia, financial

This paper studies the links between pubic spending, good governance, and its outcomes which measured by performance of local governments. This paper aims to examine the effect of government spending and good governance on performance of local government and whether good governance can strengthen the effect of government spending on performance. This paper based on 1,044 observations of local governments in Indonesia from 2009 until 2012. This paper contributes by providing an understanding of the relationship between public spending, governance and government performance and provides explanation of the mixed evidence that public spending often does not yield the expected outcomes. This research provides interesting empirical evidence that the expenditure of local government in Indonesia is inefficient in increasing performance. In the contrary, the result shows the negative effect of government spending on performance. The good public governance influenced positively toward performance and reduced the inefficiency of government spending.

This study aims to explore government accrual-based IPSAS implementation level measurements and to test the measures associated with central government fiscal transparency. Performing content analysis and Confirmatory Factor Analysis (CFA) on a sample covering 77 countries from 2008 to 2015, measurement indicates the relative importance and significance of financial performance statements and accrual accounting policies, such as nonexchanged and exchanged transactions as accrual level constructors. Conducting panel data regression, we find that accrual level scores meet the requirements of the external validity test, as indicated by their positive association with the International Budget Initiative's (IBP) fiscal transparency index. The evidence suggests that central governments should strategically implement accrual-based IPSAS. Accrual practices (implicitly or explicitly) based on IPSAS strengthen fiscal transparency when it prioritises developing accrual accounting policies substantially rather than accrual commitment and the completeness of reports.