Factors influencing audit opinion of the Indonesian municipal governments’ financial statements

Pamungkas, Bambang; Ibtida, Reisya; Avrian, Cendy

doi:10.1080/23311975.2018.1540256

Cited by 39 publications

(48 citation statements)

References 15 publications

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“…RESULTS The modified opinions collected in the available reports allowed us to identify eleven recurrent factors related with: noncurrent assets, amortizations, subsidies -investment, equity investments, inventories, debts to receive, impairments, debts to pay, provisions, cost accounting system and internal control (figure 1). The factors found are in line with the conclusions of [11], which also highlight non-compliance with accounting standards and deficiencies in internal control as factors with a significant impact on changing the auditor's opinion. From these eleven factors, we will highlight the six predominant factors in the last years, namely non-current assets, amortizations, subsidies -investment, debts to receive, impairments, debts to pay, equity investments and provisions.…”

Section: Methodssupporting

confidence: 83%

“…Following a content analysis methodology, we identified 65 audit reports with modified opinion and six predominant factors related with: non-current assets, amortizations, subsidies to investments, debts to receive, equity investments and provisions, associated with the non-compliance with accounting standards as in [11].…”

Section: Discussionmentioning

confidence: 99%

“…Analyzing the question from a different point of view, [11] finds that the deficiency in the internal control system, the noncompliance with regulations and laws and the nonconformance with the Government Accounting Standards have been significantly affecting audit opinion of municipal government financial statements in Indonesia.…”

Section: Literature Reviewmentioning

confidence: 99%

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Determinant Factors of External Audit Opinion Modification in Portuguese Municipalities

Maldonado

Pinho

Lobo

2019

2019 14th Iberian Conference on Information Systems and Technologies (CISTI)

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This paper aims to identify the determinant factors of external audit opinion modification in Portuguese municipalities that integrate the metropolitan areas of Porto and Lisbon, covering 65 municipalities. The defined time horizon was from 2013 to 2017. The analysis allows to identify six predominant factors related with: non-current assets, amortizations, investment subsidies, debts to receive, equity investments and provisions as reasons to modified opinions. The study also highlights the fact that approximately one-third of modified opinions are related to the identification, classification, measurement and assets registration.

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Section: Methodssupporting

confidence: 83%

Section: Discussionmentioning

confidence: 99%

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Determinant Factors of External Audit Opinion Modification in Portuguese Municipalities

Maldonado

Pinho

Lobo

2019

2019 14th Iberian Conference on Information Systems and Technologies (CISTI)

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“…One indicator of increased accountability is the number of findings from audits carried out by the Audit Board (BPK) of the Republic of Indonesia and the follow-up to the findings. BPK conducts audits to assess the balance of government financial statements both in terms of internal control and compliance with laws and regulations (Pamungkas, Ibtida, & Avrian, 2018). Examination of 652 financial statements of government organizations in 2017 contained 512 (79%) Unqualified Opinions (UO).…”

Section: Public Interest Statementmentioning

confidence: 99%

Internal auditors role indicators and their support of good governance

Rahayu

Yudi

Rahayu

2020

Cogent Business & Management

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The study aimed to develop indicators to measure the implementation of a new model for internal auditors in government organizations and their support of good public governance. Data was collected through a survey, with questionnaires, and interviews with key informants. Respondents were internal auditors from various government organizations. Data were analyzed using both quantitative and qualitative analysis. Internal auditors can carry out roles under a new model if they receive support in the form of leadership commitment. Currently, the dominant role of government internal auditors is as a watchdog. Roles as consultants and catalysts have begun to be implemented, although they are not yet optimal. The control variable provided the highest support for good public governance, while the audit knowledge variable provided the lowest support. The government needs to focus on increasing the quantity and capability of internal auditors through training, outreach, and technical guidance.

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“…In particular, financial audits are conducted in the context of providing opinions on the level of reasonableness of the information presented in the government financial statements. Opinion is an examiner's professional statement regarding the reasonableness of financial information presented in government financial statements (Pamungkas et al, 2018). Related to the role of audit opinions, Power (2003) states that audit opinions must be clean to be consumed by outsiders, so that they can be the basis for users of financial statements in determining financial management performance, particularly in local governments.…”

Section: Introductionmentioning

confidence: 99%

Incentive Function of Audit Opinion for the Increase of Regional Operational Expenditure and Own-Source Revenues Through Sensitivity Analysis in Indonesia

Abdullah¹,

Furqan²,

Yamin³

et al. 2020

RWE

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This study aims to analyze the sensitivity testing using measurements of realization of regional own-source revenues and operating expenditure and to analyze the extent of the effect of sample differences between Java and non-Java provinces by using samples outside of Java. By using sensitivity analysis, the results found the influence of audit opinion on the performance of the provincial government mediated by the realization of regional operating expenditure. More specifically, when using the measurement of the absolute value of the realization of regional operating expenditure it was found that there was a direct positive and significant influence of audit opinion on the performance of the Provincial Government. However, no significant effect of audit opinion was found on the realization value of regional operating expenditure and the effect of the realization value of regional operating expenditure on the performance of the Provincial Government. This result implies that an increase in audit opinion will be more likely to be used as an incentive for the Provincial Government to increase the realization of regional operating expenditure.

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Factors influencing audit opinion of the Indonesian municipal governments’ financial statements

Cited by 39 publications

References 15 publications

Determinant Factors of External Audit Opinion Modification in Portuguese Municipalities

Determinant Factors of External Audit Opinion Modification in Portuguese Municipalities

Internal auditors role indicators and their support of good governance

Incentive Function of Audit Opinion for the Increase of Regional Operational Expenditure and Own-Source Revenues Through Sensitivity Analysis in Indonesia

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