| Summary: | In local government, the inspection of local financial statement is carried
out by the Financial Inspection Board. The objective is to enhance trust among the
users of financial statement, in this case local financial statement. The statement
should comply with standards, including relevant and reliable in nature. It shows
that the data of financial statement was varified and can be regarded as fair. The
main objective of the study are to identify strengths, weaknesses, opportunities,
and threats in the enhancement of financial statement quality in Dompu regency,
and to analyze strategies that should be prioritized in the enhancement of financial
statement quality based on findings of the SWOT analysis.
The study was conducted using a qualitative method in terms of analyzing
strengths, weaknesses, opportunities, and threats in the enhancement of financial
statement in Dompu Regency. Data used were primary and secondary data. The
former was directly acquired from location of the study by using questionnaires
and observation. Meanwhile, secondary data were indirectly acquired from related
documents and regulations associated with the problems. The data collected were
analyzed using a qualitative technique.
Result of the study shows that Dompu Regency undergo problems related
to relatively severe local financial statement, so result of the inspection done by
the Financial Inspection Board indicates disclaimer opinion constitutively from
2006 to 2010. The government of Dompu Regency had Threats that should be
immediately changed into opportunities as well as weaknesses that should also be
changed into Strengths in the enhancement of local financial statement quality.
The highest score among the dimensions of SWOT in the enhancement of local
financial statement quality in Dompu Regency was threats (1,064), followed by
weaknesses (1,046), opportunities (1,061), and strenghts (913). Based in such
findings, the Local Government of Dompu Rgeency should emphasize dimensions
of threats and weaknesses with highest scores as the basis of formulating the
strategies for enhancing the quality of local financial statement. Among the main
priorities that should be done are to improve the procedures for the allocation and
reporting the local financial statement to reduce vulnerability in the misuse of
authority, as well as to increase the number and quality of prevailing regulations
to reduce the tendency of misuse due to no obvious legal basis.
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