Good Government Governance in The Internal Control System and Audit Opinion

Agus Bandiyono

doi:10.24912/ja.v25i1.728

Abstract

This study wants to describe the impact of the implementation of the internal control system in the Governance of local governance to the audit opinion CPCs local governments achieved with the application of the principles of good government governance as a moderator variable. This study is a descriptive quantitative study that seeks to describe an application of an internal control system to BPK's audit opinion by applying the principles of good government governance as a moderating variable. Respondents in this study were OPD-OPDs in the Banten Province government, Pandeglang Regency Government, and Serang City Government. The data used in the analysis of this research is data that comes from a questionnaire which is then filled in by the respondent. SEM PLS is used as a tool to analyze the data in this study. The results of this study indicate that the implementation of a good internal control system can have a positive and significant impact on the audit opinion of BPK RI. The moderator variable in the application of the principles of good governance is also able to act as a moderating variable, namely being able to increase a positive and significant impact on the Audit Opinion Raihan BPK.

Highlights

One manifestation of the responsibility of local governments in their regional management activities is the collection of audit opinions from the Supreme Audit Agency of the Republic of Indonesia
The value of t is greater than the t table (16,425> 1,980), so it can be concluded that the moderator variable in the application of the principles of good government governance can become a moderator variable on the variable application of the internal control system which can have a significant impact on providing BPK audit opinion
This research results in a conclusion that the better the implementation of an institution's internal control system will have an impact on the audit opinion that will be obtained

Summary

INTRODUCTION

According to (COSO, 2013) the internal control system is an activity carried out by commissioners, management, and other personnel, which is formed to provide adequate confidence about the achievement of three objectives, namely the effectiveness and efficiency of operations, reliability of financial reporting, compliance against applicable laws and regulations. Opinion The audit opinion of the Supreme Audit Agency of the Republic of Indonesia is a professional auditor's statement regarding the fairness of the financial statements presented based on criteria of conformity with government accounting standards, adequacy of disclosure, compliance with laws and regulations, and the effectiveness of the internal control system. Based on some of the research above, an initial hypothesis can be drawn that the application of the internal control system affects audit opinion by applying the principles of good government governance as a moderator variable. H2 : Implementation of the Internal Control System influencing the BPK Audit Opinion by applying the principles of good government governance as a moderator variable

METHODS

Findings

CONCLUSION