Internal control weaknesses: Its relationship with local government characteristics and follow-up on audit results
Internal control plays a critical role in achieving the effectiveness and efficiency of organization's operational activities. This study seeks to investigate the effect of local government size, locally-generated revenue, capital expenditures, social assistance expenditures, and follow-up aud...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2023-06-01
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| Series: | Jurnal Akuntansi dan Auditing Indonesia |
| Subjects: | |
| Online Access: | https://journal.uii.ac.id/JAAI/article/view/25439 |
| _version_ | 1797253843482836992 |
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| author | Dwi Nurmala Sari Dewi Darmastuti |
| author_facet | Dwi Nurmala Sari Dewi Darmastuti |
| author_sort | Dwi Nurmala Sari |
| collection | DOAJ |
| description |
Internal control plays a critical role in achieving the effectiveness and efficiency of organization's operational activities. This study seeks to investigate the effect of local government size, locally-generated revenue, capital expenditures, social assistance expenditures, and follow-up audit results on local government’s internal control weaknesses. By using multiple linear regressions on 382 samples of local governments in Indonesia, this study found that local government size and social assistance expenditures positively affected internal control weaknesses. Locally-generated revenue negatively affected internal control weaknesses, while capital expenditures and follow-up audit results did not significantly affect internal control weaknesses. This study adds social assistance expenditures, which are still rarely studied by previous researchers because of the large number of irregularities and their discretionary nature. Thus, the results of this study may provide an input for auditors and regulators to focus more on spending on social assistance and further improve comprehensive standards in internal control systems.
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| first_indexed | 2024-04-24T21:40:30Z |
| format | Article |
| id | doaj.art-6f4296ce03254ad984367f5744930bbd |
| institution | Directory Open Access Journal |
| issn | 1410-2420 2528-6528 |
| language | English |
| last_indexed | 2024-04-24T21:40:30Z |
| publishDate | 2023-06-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Jurnal Akuntansi dan Auditing Indonesia |
| spelling | doaj.art-6f4296ce03254ad984367f5744930bbd2024-03-21T07:59:27ZengUniversitas Islam IndonesiaJurnal Akuntansi dan Auditing Indonesia1410-24202528-65282023-06-0127110.20885/jaai.vol27.iss1.art10Internal control weaknesses: Its relationship with local government characteristics and follow-up on audit resultsDwi Nurmala Sari0Dewi Darmastuti1Department of Accounting, Universitas Pembangunan Nasional Veteran Jakarta, Depok, IndonesiaDepartment of Accounting, Universitas Pembangunan Nasional Veteran Jakarta, Depok, Indonesia Internal control plays a critical role in achieving the effectiveness and efficiency of organization's operational activities. This study seeks to investigate the effect of local government size, locally-generated revenue, capital expenditures, social assistance expenditures, and follow-up audit results on local government’s internal control weaknesses. By using multiple linear regressions on 382 samples of local governments in Indonesia, this study found that local government size and social assistance expenditures positively affected internal control weaknesses. Locally-generated revenue negatively affected internal control weaknesses, while capital expenditures and follow-up audit results did not significantly affect internal control weaknesses. This study adds social assistance expenditures, which are still rarely studied by previous researchers because of the large number of irregularities and their discretionary nature. Thus, the results of this study may provide an input for auditors and regulators to focus more on spending on social assistance and further improve comprehensive standards in internal control systems. https://journal.uii.ac.id/JAAI/article/view/25439Internal control weaknesseslocal government characteristics social assistance expendituresfollow up on audit results |
| spellingShingle | Dwi Nurmala Sari Dewi Darmastuti Internal control weaknesses: Its relationship with local government characteristics and follow-up on audit results Jurnal Akuntansi dan Auditing Indonesia Internal control weaknesses local government characteristics social assistance expenditures follow up on audit results |
| title | Internal control weaknesses: Its relationship with local government characteristics and follow-up on audit results |
| title_full | Internal control weaknesses: Its relationship with local government characteristics and follow-up on audit results |
| title_fullStr | Internal control weaknesses: Its relationship with local government characteristics and follow-up on audit results |
| title_full_unstemmed | Internal control weaknesses: Its relationship with local government characteristics and follow-up on audit results |
| title_short | Internal control weaknesses: Its relationship with local government characteristics and follow-up on audit results |
| title_sort | internal control weaknesses its relationship with local government characteristics and follow up on audit results |
| topic | Internal control weaknesses local government characteristics social assistance expenditures follow up on audit results |
| url | https://journal.uii.ac.id/JAAI/article/view/25439 |
| work_keys_str_mv | AT dwinurmalasari internalcontrolweaknessesitsrelationshipwithlocalgovernmentcharacteristicsandfollowuponauditresults AT dewidarmastuti internalcontrolweaknessesitsrelationshipwithlocalgovernmentcharacteristicsandfollowuponauditresults |