Abstract
The objective of this research is to assess perceptions of financial statement users toward current opinion issued by Supreme Audit Board (Badan Pemeriksa Keuangan/BPK) and compare how perception of financial statement users toward modified opinion which was created by adding additional information related to materiality, adding a rule in accounting standard to disclose materiality level, involving financial statement users in setting materiality level, and conducting knowledge transfer to financial statement users. This research employed survey methodology using questionnaires. Respondents of the survey were local legislators in Special Region of Yogyakarta (Daerah Istimewa Yogyakarta/DIY). There were 32 questionnaires answered. Data collected from 32 questionnaires were tested using descriptive statistic, validity test, reliability test and Wilcoxon Signed Rank Test. The result showed that financial statements users do not really understand materiality aspect in the issuance of opinion BPK. After they received additional information related to materiality, they acknowledged that they had better understand of information stated in financial statements audited by BPK. In addition, financial statements users thought that they need to be involved in setting materiality levels. They also thought that they need knowledge transfer through training or workshop to improve their understanding of information stated in financial statements audited by BPK.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.