THE ROLE OF INTERNAL AUDITS ON THE PERFORMANCE OF LOCAL GOVERNMENT ADMINISTRATION: EVIDENCE FROM INDONESIA
This research aims to provide a comprehensive analysis of internal audit function (IAF) characteristics and the administrative performance of local governments (LGs) in Indonesia. We use official secondary data from the Indonesian regulatory bodies that generate unbalanced panel data, with 5,038 obs...
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| Format: | Article |
| Language: | English |
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Mykolas Romeris University
2024-01-01
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| Series: | Public Policy and Administration |
| Subjects: | |
| Online Access: | https://ojs.mruni.eu/ojs/public-policy-and-administration/article/view/7161 |
| _version_ | 1827389021288923136 |
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| author | Sutaryo Salawati Binti Sahari Shaharudin Bin Jakpar Sophee Sulong Bin Balia |
| author_facet | Sutaryo Salawati Binti Sahari Shaharudin Bin Jakpar Sophee Sulong Bin Balia |
| author_sort | Sutaryo |
| collection | DOAJ |
| description | This research aims to provide a comprehensive analysis of internal audit function (IAF) characteristics and the administrative performance of local governments (LGs) in Indonesia. We use official secondary data from the Indonesian regulatory bodies that generate unbalanced panel data, with 5,038 observations analyzed with panel data regression. Our analysis reveals that most LGs in Indonesia have achieved high-level administrative performance since 2015. Despite this, several LGs remain at the medium and low levels. LGs located in Java and Bali have the highest overall performance, followed by Borneo, Sumatra, Sulawesi, and East Indonesia. We also reveal that IAF capability, maturity, and expertise positively affect the administrative performance of LGs in Indonesia.
Proper internal audit characteristics are essential in optimizing the supervision of local governance for better administration performance. We also suggest that the Financial and Development Supervisory Agency (BPKP), which is in charge of IAF development, implement continuous development programs properly. It is important that proper human resource allocation and the use of technology are supervised to realize good administrative performance and enhance public accountability. |
| first_indexed | 2024-03-08T16:28:29Z |
| format | Article |
| id | doaj.art-94e9b588cd75465dae962a5d674f43cb |
| institution | Directory Open Access Journal |
| issn | 1648-2603 2029-2872 |
| language | English |
| last_indexed | 2024-03-08T16:28:29Z |
| publishDate | 2024-01-01 |
| publisher | Mykolas Romeris University |
| record_format | Article |
| series | Public Policy and Administration |
| spelling | doaj.art-94e9b588cd75465dae962a5d674f43cb2024-01-06T15:31:45ZengMykolas Romeris UniversityPublic Policy and Administration1648-26032029-28722024-01-01224578593https://doi.org/10.13165/VPA-23-22-4-14THE ROLE OF INTERNAL AUDITS ON THE PERFORMANCE OF LOCAL GOVERNMENT ADMINISTRATION: EVIDENCE FROM INDONESIASutaryo0Salawati Binti Sahari1Shaharudin Bin Jakpar2Sophee Sulong Bin Balia3University Sebelas Maret, IndonesiaUniversity Malaysia, SarawakUniversity Malaysia, SarawakUniversity Malaysia, SarawakThis research aims to provide a comprehensive analysis of internal audit function (IAF) characteristics and the administrative performance of local governments (LGs) in Indonesia. We use official secondary data from the Indonesian regulatory bodies that generate unbalanced panel data, with 5,038 observations analyzed with panel data regression. Our analysis reveals that most LGs in Indonesia have achieved high-level administrative performance since 2015. Despite this, several LGs remain at the medium and low levels. LGs located in Java and Bali have the highest overall performance, followed by Borneo, Sumatra, Sulawesi, and East Indonesia. We also reveal that IAF capability, maturity, and expertise positively affect the administrative performance of LGs in Indonesia. Proper internal audit characteristics are essential in optimizing the supervision of local governance for better administration performance. We also suggest that the Financial and Development Supervisory Agency (BPKP), which is in charge of IAF development, implement continuous development programs properly. It is important that proper human resource allocation and the use of technology are supervised to realize good administrative performance and enhance public accountability.https://ojs.mruni.eu/ojs/public-policy-and-administration/article/view/7161indonesia; local government; administration performance; internal audit function |
| spellingShingle | Sutaryo Salawati Binti Sahari Shaharudin Bin Jakpar Sophee Sulong Bin Balia THE ROLE OF INTERNAL AUDITS ON THE PERFORMANCE OF LOCAL GOVERNMENT ADMINISTRATION: EVIDENCE FROM INDONESIA Public Policy and Administration indonesia; local government; administration performance; internal audit function |
| title | THE ROLE OF INTERNAL AUDITS ON THE PERFORMANCE OF LOCAL GOVERNMENT ADMINISTRATION: EVIDENCE FROM INDONESIA |
| title_full | THE ROLE OF INTERNAL AUDITS ON THE PERFORMANCE OF LOCAL GOVERNMENT ADMINISTRATION: EVIDENCE FROM INDONESIA |
| title_fullStr | THE ROLE OF INTERNAL AUDITS ON THE PERFORMANCE OF LOCAL GOVERNMENT ADMINISTRATION: EVIDENCE FROM INDONESIA |
| title_full_unstemmed | THE ROLE OF INTERNAL AUDITS ON THE PERFORMANCE OF LOCAL GOVERNMENT ADMINISTRATION: EVIDENCE FROM INDONESIA |
| title_short | THE ROLE OF INTERNAL AUDITS ON THE PERFORMANCE OF LOCAL GOVERNMENT ADMINISTRATION: EVIDENCE FROM INDONESIA |
| title_sort | role of internal audits on the performance of local government administration evidence from indonesia |
| topic | indonesia; local government; administration performance; internal audit function |
| url | https://ojs.mruni.eu/ojs/public-policy-and-administration/article/view/7161 |
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