Detail Cantuman

Abstract: There are two objectives of this study. The first objective is to evaluate the
quality of local government financial statement (LGFS) review conducted by five local
government inspectorate offices (i.e., internal auditor) in the Province Daerah Istimewa
Yogyakarta, Indonesia. Secondly, this study analyzes the relationship between the
quality of LGFS review and the number of audit findings conducted by the Supreme
Audit Board (i.e., the external auditor). This study uses qualitative methods. Results of
this study indicate that the quality of LGFS review varies significantly among local
governments as shown by the score of review quality ranging from 73.08% to 83.59%.
Furthermore, the quality of LGFS review has a negative correlation with the number of
audit findings, which means that the better the quality of the review the smaller the
number of audit findings. Results of this study are expected to provide input to local
government inspectorates to take necessary steps so that the implementation of LGFS
review to be more qualified. In turn, the number of audit findings can be minimized.
Also, the academic benefits of this research are to become a reference for the next
researcher who wants to do further research related to the implementation of the LGFS
review.
Keywords: Financial Statement Review, Audit Finding, Local Government, Supreme
Audit Board, Inspectorate.