Assessing the development of performance audit methodology in the supreme audit institution: The case of Indonesia

Abstract

Badan Pemeriksa Keuangan (BPK), or The Audit Board of the Republic of Indonesia, has introduced performance audits intensively since public sector audit reforms were initiated in 2001. However, the implementation of performance audits still faces several obstacles. This study examines the development of the performance audit methodology in BPK, which can be divided into three stages: before the revitalization of BPK in 2006, the initial development of performance audits during 2006-2010, and the maturity of the implementation of performance audits since 2011. This study concludes that several key factors have affected the implementation of performance audits at BPK, including the development of audit guidelines, the dynamics of medium-term government planning, the focus of the BPK’s Management, and assistance provided by other supreme audit institutions (SAI). To address new realities and challenges in the future, more sophisticated performance audit methods need to be adopted by BPK, such as big data analytics, the adoption of governance audits, and employing public policy analysis. Without adopting such methods, the institutionalization of ​​effective performance audits might not be achieved in the future.

The Influence of Tasks Complexity, Locus of Control and Emotional Stability on The Performance of The Audit Board of Indonesia Auditors Representing Lampung Province

“…BPK RI is a prestigious governmental institution empowered to scrutinize the administration and accountability of national finances. Included in this analysis are a number of organizations and bodies responsible for overseeing the state's financial resources, including the following: Bank Indonesia, the Public Service Agency (BLU), State-Owned Enterprises (BUMN), Regional-Owned Enterprises (BUMD), and State Revenue and Expenditure Budgets (APBN and APBD, respectively) (Andrianto et al, 2021). The success of the BPK RI Lampung Province Representative in fulfilling its duties and responsibilities can be determined by its performance achievements.…”

The Influence of Factors on the Demand for Performance Auditing in the Public Sector

“…The remainder have guidance but lack specific methodology related to the assurance level of PA, PA definition, and PA methodology. In addition, international auditing standards issued by IFAC also do not develop and provide a methodology for designing operational accounting models [29,20].…”