Evaluation of Regional Financial Management Based on Local Government Information Systems

Abstract

The implementation of local government information systems (SIPD) needs to be evaluated to assess the effectiveness of local governments in managing their finances. Based on Regulation of the Minister of Home Affairs of the Republic of Indonesia Number 77 of 2020, the difficulties discovered have not been applied to SIPD optimally in the Regional Secretariat of South Sumatra Province. This is due to a lack of application readiness and complicated laws around its application. The government should immediately make system adjustments and make technical guidelines for the use of applications.

Internal Controls, Investigative Audits, and Forensic Accounting Can Help Prevent Fraud

“…This phenomenon can be influenced by several factors, namely the application of internal control, investigative audits and forensic accounting in disclosing fraud. [3] states that with the effective implementation of internal control objectives, government organizations have a quality internal control system to control fraud risks and reduce fraud rates. The next factor is an investigative audit.…”

“…Previous research [3] and [6] demonstrate that internal control factors have a favourable and significant impact on fraud disclosure. Audit of investigation [7] [8].…”

“…However, unlike [9], which demonstrates that investigative audits have no influence on fraud disclosure. Forensic accounting [3] has an effect on fraud disclosure variables, but varies from [10] and [11] in that it does not have an effect on fraud disclosure.…”