One of the implications of desentralization is a performance measurement of local government. Local government peformance can be seen from the Evaluation of Local Government Performance score (Mustikarini & Fitriasari, 2012), efficiency ratio (Marfiana & Kurniasih, 2013) and the Human Development Index (Prasetyaningsih, 2015). HDI is also an indicator for public welfare, so it can be concluded that local government performance can be measured from the level of its public welfare. This research aimed to described the relationship between financial characteristics of local government and BPK’s audit findings. It uses 34 data from local governments inNorth Sumatera from 2011 to 2013, and refers to research model that is composed by Prasetyaningsih (2015) . Research shows that financial characteristic of local government (total asset and capital expenditure) and audit finding have significant effect to HDI in local government of North Sumatera Province within 2011-2013 period.KEYWORDSaudit findings, public welfare, performance measurement, local government.ABSTRAKSalah satu implikasi dari desentralisasi adalah pengukuran kinerja pemerintah daerah. Kinerja pemerintah daerah dapat dilihat dari nilai Evaluasi Kinerja Penyelenggaraan Pemerintah Daerah (Mustikarini dan Fitriasari, 2012), rasio efisiensi (Marfiana dan Kurniasih, 2013) dan Indeks Pembangunan Manusia (Prasetyaningsih, 2015). IPM juga merupakan indikator kesejahteraan masyarakat, sehingga dapat disimpulkan bahwa kinerja pemerintah daerah dapat diukur dari tingkat kesejahteraan masyarakatnya. Kajian ini dilakukan untuk menggambarkan hubungan karakteristik keuangan pemerintah daerah dan hasil pemeriksaan BPK terhadap kinerja pemerintah daerah dalam mewujudkan kesejahteraan masyarakat yang diproksikan dengan IPM. Kajian ini mengacu pada model penelitian yang disusun oleh Prasetyaningsih (2015) dengan data panel dari 34 pemerintah daerah di Sumatera Utara selama tahun 2011-2013. Hasil kajian ini menunjukkan bahwa terdapatpengaruh yang signifikan antara karakteristik keuangan daerah (total aset dan belanja) dan hasil pemeriksaan atas IPM di Pemerintah Daerah Sumatera Utara periode Tahun 2011-2013.KATA KUNCIHasil pemeriksaan, kesejahteraan masyarakat, pengukuran kinerja, pemerintah daerah.

Purpose This paper aims to investigate the relation between the cultural dimensions of Hofstede and corruption in developing countries. Design/methodology/approach This study uses a quantitative research approach with multiple regression analysis and quantile regression (QR) analysis. Findings The results showed that all cultural dimensions except power distance index (PDI) influence the level of corruption in developing countries. This study also found something interesting from the significance of the cultural dimensions of individualism and uncertainty avoidance (UAI) in the regression model. The community of developing countries tends to be collective which means that the level of corruption in the country is getting higher. The cultural dimension of UAI in developing countries is also interesting to study because of the positive relation with the Corruption Personal Index value which means it tends to be freer from corruption. Research limitations/implications This research is limited to the number of samples and the scope of the Hofstede’s cultural dimensions which are limited in developing countries. Practical implications The results of this research can add empirical evidence related to cultural variables and corruption, especially in developing countries. Social implications This research is expected to be a reference on cultural aspect and corruption in developing countries to be studied more deeply to investigate the causes of corruption in developing countries. Originality/value This is a preliminary study using cultural dimension and corruption in developing countries with quantile regression (QR) as an analysis tool and can add empirical evidence about the cultural dimensions and corruption.