Development Supervisory Agency Research Articles

Investigating the Structural Model of Whistle Blowing System on Government Procurement Fraud: Examining Mediating Effect of Investigative Audit

This study aims to develop a fraud disclosure model in government procurement in Indonesia through a whistle blowing system with an investigative audit as a mediator. Disclosure of fraud is the result of an investigative audit. The effectiveness of the implementation of investigative audit procedures will be achieved if the auditor has the ability to carry out each stage in the audit standard. To maximize the performance of investigative audits, a system is needed to uncover fraud. The whistleblowing system is expected to be an effective tool to reveal fraud in government procurement. The research was conducted by distributing questionnaires to respondents electronically by sending a google form link containing a list of questions to auditors at the Supreme Audit Agency (BPK) and internal auditors at the Financial and Development Supervisory Agency (BPKP) throughout Indonesia. The results of the study found that the use of a whistle blowing system could increase the effectiveness of investigative audits on government procurement. Another finding is that investigative audits can reduce the disclosure of government procurement fraud. The effectiveness of the whistle blowing system in reducing the level of disclosure of government procurement fraud does not occur directly, but must be mediated by a good investigative audit. The results of this study indicate that the reporting of government procurement fraud cases on the whistle blowing system must be followed up with a thorough investigative audit so that disclosures of government procurement fraud cases can be traced better. Additional analysis in this study shows that although the functions of external auditors and internal auditors are different, the level and type of disclosure of government procurement fraud do not differ.

Penerapan sistem dan prosedur akuntansi untuk perjalanan dinas berdasarkan PMK Nomor 119 Tahun 2023 pada Perwakilan BPKP Provinsi Sulawesi Utara

Official travel is a trip outside the place of residence, either individually or together with others, to the domicile office of the civil servant or non-civil servant concerned (or PNS). It is carried out for the benefit of the state or region by order of an authorised official. This study will determine how the implementation of accounting systems and procedures for official travel at the BPKP Representative of North Sulawesi Province based on PMK Number 119 of 2023. This research employs qualitative research methods with a descriptive approach. The results demonstrate that the implementation of official travel accounting systems and procedures at the Representative of the North Sulawesi Province Financial and Development Supervisory Agency is in compliance with government accounting standards and in alignment with PMK Number 119 of 2023.

Strengthening Fraud Control Plan For Investigative Audit And Probity Audit In Fraud Detection

The high number of corruption cases in local governments in Indonesia demands increased government attention to fraud cases. Opportunity for fraud can start from the planning stage to follow-up so that appropriate preventive and repressive handling efforts are needed. The Financial and Development Supervisory Agency has developed a fraud control plan and probity audit guidelines that are expected to be a solution to eradicate fraud in local governments. This study aims to analyse the effect of implementing investigative and probity audits on strengthening the fraud control plan in detecting fraud by auditors of the Financial and Development Supervision Agency of South Sulawesi and West Sulawesi. This study used quantitative with multiple linear analysis with Smart PLS 3.0 Software. Results found that investigative and probity audits positively affect fraud detection. Meanwhile, the fraud control plan does not strengthen the relationship between investigative and probity audits to fraud detection.

Preventing Corruption in Bali’s Customary Villages: How Do Regional Institutions Play a Role?

Customary villages are traditional institutions in Bali that have existed for centuries. The village has autonomy when it comes to managing its customary arrangements based on local traditions and wisdom, meaning that it does not have a hierarchical relationship with the government based on the state structure of the Republic of Indonesia. The Bali Province Government, a second-layer hierarchical government structure in Indonesia, applies a unique approach to performing relationships with customary villages in Bali as it has regularly supported the existence and activities of customary villages, including providing funding assistance. Unfortunately, several cases have shown the misuse of government funds. This article, therefore, identifies the practice of fraud and corruption in customary villages in Bali. Second, it analyses the role of the Customary Community Development Agency (DPMA) of the Bali Province Government in supervising the financial management of Bali's customary villages. Lastly, it supports the synergy between DPMA and the Representative Office of the Financial and Development Supervisory Agency (BPKP) of Bali Province in preventing corruption cases in the customary villages. The article applies empirical legal research, which involves collecting primary and secondary data and analyzing them using statutory, factual, and legal concept analysis approaches. The research suggests that fraud and corruption cases in customary villages cause a loss of government funds, harming the financial management of Village Credit Institutions (LPD), and involving the misuse of power. The provincial regulation authorizes DPMA to address this issue by monitoring how customary villages use the Bali Province Government grants. This paper then argues that the DPMA’s role would be more effective if it adopted a more formal collaboration with the Representative BPKP in Bali Province through various joint programs that support the comprehensive efforts to prevent corruption in customary villages in Bali.

Analisis Efektivitas Penerapan Aplikasi Sistem Keuangan Desa dalam Pengelolaan Keuangan Desa pada Desa Majang Tengah Kabupaten Malang

The Financial and Development Supervisory Agency (BPKP) manages village finances using the siskuedes application system. With this system, the village government can run village finances with good administrative quality for a village. this system aims for the government to run village finances more easily and efficiently in village financial reports. There are also benefits of Siskeudes also supported by the results of research showing that the application of Siskeudes has a very positive impact on time and cost efficiency. this research sample was taken in Majangtengah village, dampit subdistrict. data collection using the text method of interviews with village officials. in this data analysis, researchers processed data from interviews with village officials which the researchers then concluded according to the standards of domestic government regulations NO 20 of 2018. in the study, researchers concluded that the application of the SISKEUDES application in the village was effective and efficient in a transparent and accountable manner.

The Influence of APIP Capabilities in Optimizing Financial Audit Efficiency: Optimal Accountability

Abstract This study aims to analyze the influence of the capabilities of the Government Internal Supervisory Apparatus (APIP) in optimizing the efficiency of financial audits and reducing audit findings to achieve optimal accountability. The study was conducted by collecting annual report documents from the Financial and Development Supervisory Agency (BPKP), the Audit Board of the Republic of Indonesia (BPK), and the Ministry of Home Affairs (Kemendagri). A quantitative approach was used in this study, with data analysis involving 3,252 observations from various government agencies in Indonesia. The data collected included APIP capabilities, financial audit efficiency, and the number of audit findings. The mediating variable used in this study is the follow-up on audit recommendations. The results show that APIP capabilities have a significant impact on the efficiency of financial audits. Increasing APIP capabilities has been proven to significantly enhance audit follow-ups and reduce the number of audit findings. Additionally, the variables of organizational age and geographic factors also significantly affect audit efficiency and the number of audit findings, indicating that these factors are important in achieving better financial accountability. Conversely, the size of the agency negatively affects audit follow-ups and positively affects the number of audit findings. These findings underscore the importance of enhancing APIP competencies and capabilities as a primary strategy in improving the efficiency and accountability of financial audits in the public sector. This study provides significant contributions to the development of internal supervisory policies and the improvement of financial audit quality in Indonesia, as well as encouraging efforts to enhance public sector accountability. Keyword: apip capabilities; financial audit efficiency; audit findings; accountability

The Influence of Organizational Culture and Job Satisfaction on Organizational Commitment in Employees (Case Study: Education and Training Center for Supervision of the Financial and Development Supervisory Agency)

The Influence of Organizational Culture and Job Satisfaction on Organizational Commitment in Employees (Case Study: Education and Training Center for Supervision of the Financial and Development Supervisory Agency)

Determinants of job satisfaction among employees at the Ministry of Religious Affairs Office in Palembang

Purpose: The purpose of this resource is to determine The Influence of Competence, Independence, and Professionalism of Government Internal Auditors on Audit Quality at the Representative Offices of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province. Research methodology: The variables in this study are competence (X1), independence (X2), professionalism (X3), and Audit Quality (Y). The study sample comprised of 40 respondents. The research carried out in this study was quantitative, using primary data. The data collection technique used in this study was a questionnaire. The study population included all internal auditors at the Representative Office of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province. The samples used in this study were selected using random sampling. Data analysis was conducted using descriptive statistical analysis, normality test, linearity test, multicollinearity test, heteroscedasticity test, multiple regression analysis test, R Square test, t statistical test, and F statistical test. Results: The results of the research partially show that competence and professionalism have positive and significant effects on audit quality, while independence has positive and insignificant effects on audit quality. Simultaneously, the competence, independence, and professionalism of government internal auditors have a positive and significant effect on audit quality at the Representative Offices of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province.

The impact of audit findings and follow-up actions on audit recommendations on audit opinions of financial statements with APIP capabilities as a moderating variable (A study on provincial/regencies/cities governments in Suluttenggo Region)

The audit opinion issued on government financial statements is the conclusion of the BPK audit process. These opinions provide a qualitative picture of financial management, reflecting the accountability and transparency of local government. This research analyses the influence of audit findings and follow-up actions on audit recommendations (or TLRHP) on audit opinions and examines the moderating effect of APIP capabilities on this relationship. An analytical method employed is binary logistic regression analysis with the absolute difference test. This study used secondary data from the BPK IHPS and the Financial and Development Supervisory Agency (or BPKP) annual performance report. The data encompasses 37 provincial, regency, and city governments in North Sulawesi, Central Sulawesi, and Gorontalo for the fiscal period 2018 to 2022. The results reveal that audit findings have no significant impact on audit opinions. Conversely, both TLRHP and APIP capabilities have a significant influence on audit opinions. Furthermore, APIP capabilities moderate the relationship between TLRHP and audit opinions but not the relationship between audit findings and opinions.

The Determinants of Fraud Prevention in Government Agencies

The purpose of this study is to examine the influence of the whistleblowing system, internal control, apparatus competence, and auditor ethics on fraud prevention in government agencies. A quantitative method is used in this study as a research approach. Meanwhile, the object of research is the auditor of BPKP (Financial and Development Supervisory Agency) Representative of East Java with the sample in this study totaled 112 internal auditors. This study uses the type of primary data in the form of a questionnaire by Google Forms given to the auditors. The data analysis used PLS-SEM with SmartPLS software version 4 as the analysis tool. The study’s results show that the whistle-blowing system and auditor ethics positively and significantly influence fraud prevention in government agencies, while internal control and apparatus competence do not significantly influence fraud prevention in government agencies.

EFFECT OF INVESTIGATIVE AUDIT ON FRAUD PREVENTION THROUGH PROFESSIONAL COMPETENCE AND PRUDENCE AS AN INTERVENING VARIABLE

This study aims to determine the influence of investigative audit variables on fraud prevention with professional competence and prudence as intervening. The research method used in the study is a quantitative research method with primary data which is from questionnaire data measured using a Likert scale. This research was conducted at the Financial and Development Supervisory Agency, BPKP Representative of North Sumatra Province. The population in this study is all auditor employees as many as 32 people in BPKP North Sumatra Province. The sample collection method uses Saturated Samples with the criteria of an auditor of BPKP North Sumatra Province so that the number of samples obtained is 32 samples. The results of this study stated that: First, the results of regression analysis showed that investigative audits had a positive and significant effect on professional competence and prudence. That is, Ha2 is accepted. Second, the results of regression analysis show that investigative audits have a positive and significant effect on fraud prevention. That is, Ha4 is accepted. Third, the results of regression analysis show that professional competence and prudence have a positive and significant effect on fraud prevention. That is, Ha5 is accepted. Fourth, the results of regression analysis show that professional Competence and Prudence mediate investigative audits against fraud prevention. That is, Ha7 is accepted. JEL Classification: M41, M42, M48

Evaluasi Metode Audit Penghitungan Kerugian Keuangan Negara pada Badan Pengawasan Keuangan dan Pembangunan

This research aims to evaluate the audit method for Calculating State Financial Losses (PKKN) by the Financial and Development Supervisory Agency (BPKP). This research method is qualitative, with an evaluation approach using case studies at BPKP. The primary data used in this research are the results of interviews with BPKP auditors who have carried out PKKN audits and are experts in court. The trial decision document will be mapped based on case description themes, PKKN methods, and PKKN values. The secondary data used is a copy of the court decision on a criminal corruption case that was finalized and downloaded from the official website of the Supreme Court (MA). The implementation of the PKKN audit by BPKP is evaluated using a fraud theory approach, the REAL Tree concept, and applicable laws and regulations. The provision of expert testimony in court will be considered using the Daubert test. The results of this research are that the PKKN audit by BPKP does not follow the fraud theory approach because it does not create and test hypotheses. There is a PKKN method that differs from the REAL Tree concept because BPKP auditors apply the criteria for real and definite state financial losses (actual loss) without considering compelling interest as a time value of money concept. Providing expert information by BPKP auditors is different from the Daubert test because BPKP does not require monitoring and evaluating court decisions and does not carry out peer reviews of PKKN methods.

The Influence of Experience, Competence, Motivation, Professional Skepticism of Auditors on the Quality of BPKP Supervision (Study at BPKP North Sumatra Province)

The supervision quality produced by the Financial and Development Supervisory Agency in Indonesia still needs to be improved, as evidenced by the trend of corruption cases from 2019 to 2020. This research aims to test and analyze the impact of various factors such as Experience, Competence, Motivation, and Auditor Professional Skepticism on Supervision Quality. This research uses quantitative descriptive methods. The population in this study were all BPKP auditors in North Sumatra Province. The research sample consisted of 100 BPKP auditors from North Sumatra Province. Data collection was carried out through distributing questionnaires and data analysis using the SmartPLS application. Research findings show that the Auditor’s Experience, Motivation, and Auditor Professional Skepticism positively affect the Supervision quality. Apart from that, competency does not affect the quality of supervision.

Influence of Competence, Independence, and Professionalism of Government Internal Auditors on Audit Quality at the Representative Offices of the Financial and Development Supervisory Agency (BPKP)

Purpose: Many cases related to audit quality in Indonesia have become phenomena that need to be investigated. Some determinants of audit quality are competence, independence, and professionalism. In practice, an auditor has problems carrying out his duties. However, this is a challenge for auditors. Therefore, the purpose of this resource is to determine The Influence of Competence, Independence, and Professionalism of Government Internal Auditors on Audit Quality at the Representative Offices of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province. Method: The variables in this research are Competence (X1), Independence (X2), Professionalism (X3), and Audit Quality (Y). The study sample comprised of 40 respondents. The type of research carried out in this study was quantitative using primary data. The data-collection technique used in this study was a questionnaire. The population of this research included all internal auditors at the Representative Office of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province. The sample used in this study was determined using a random sampling technique. Data analysis was conducted using descriptive statistical analysis, normality test, linearity test, multicollinearity test, heteroscedasticity test, multiple regression analysis test, R Square test, t statistical test, and F statistical test. Result: The results of the research partially show that competence and professionalism have positive and significant effects on audit quality, while independence has positive and insignificant effects on audit quality. Simultaneously, it shows that the competence, independence, and professionalism of government internal auditors have a positive and significant effect on audit quality at the Representative Offices of the Financial and Development Supervisory Agency (BPKP) of South Sulawesi Province.

ANALYSIS OF THE IMPLEMENTATION OF THE WHISTLEBLOWING SYSTEM IN THE KENDARI CITY GOVERNMENT

The whistleblowing system is becoming an increasingly utilized tool worldwide to prevent and detect current violations. However, its implementation is not easy, as individuals require a sense of security and safety guarantees to be willing to participate in preventing violations and corruption. Therefore, adequate structures and processes are needed for its implementation. Kendari City is the only local government in the Southeast Sulawesi Province region that has implemented a whistleblowing system in its administration. This research aims to analyze the structure, mechanisms, and procedures of the whistleblowing system that has been implemented using best practices established by the Deputy of Investigation at the Financial and Development Supervisory Agency. The research employs a qualitative approach, utilizing document studies, observations, and interviews with individuals involved or directly engaged in implementing the whistleblowing system in the Kendari City government. The results indicate that the whistleblowing system implementation’s structure, mechanisms, and procedures have adhered to best practices in policy and institutional aspects as per the Technical Guidance Guidelines for the Implementation of the Thematic Fraud Control Plan System and Internal Whistleblowing Behavior.

DEVELOPMENT OF HUMAN RESOURCES ON ENVIRONMENTAL SOCIALIZATION TO INCREASE THE WORK EFFECTIVENESS OF NUMUT REPRESENTATIVE FINANCIAL AND DEVELOPMENT SUPERVISION AGENCY (BPKP) EMPLOYEES

The point of the examination is to decide the consequences of the investigation of human asset advancement on representative work viability at the North Sumatra delegate BPKB and the investigation of ecological socialization on worker work adequacy. In this exploration, the number of examination subjects was 50. By utilizing the Sturges equation, the quantity of classes acquired is 6.6. After that, the number is rounded to seven age groups. According to the findings of a survey that was conducted among 50 employees of the North Sumatra Representative Financial and Development Supervisory Agency (BPKP), the majority of respondents (69 percent) were S-1 graduates, followed by D3 graduates. 12 respondents (24 percent), 3 respondents (6 percent) with master's degrees, and 1 respondent (2 percent) with high school degrees. In view of respondents' reactions to human asset improvement things, it is known that things 1 to 3 got scores somewhere in the range of 195 and 202. The typical worth was 3.91 to 4.04, with a TCR worth of 78.0 to 80.8. The TCR esteem is the value used to determine the respondent's degree of accomplishment. As a result, the respondent's performance on items 1 through 3 can be considered satisfactory (B). This classification shows that the respondent has addressed the inquiry accurately and as per the predefined models. It is additionally known that things 4 to 10 got scores somewhere in the range of 217 and 223.

Local development in the emerging market: Does integrated government internal control matter?

Following the significant local development issues in Indonesia (Pukuh & Widyasthika, 2017; Siburian, 2020), the study aims at examining the effect of an integrated government internal control system (GICS) on various local development measures. We employ secondary data from the government regulating bodies. The study discovers that there are still indeed significant issues in development achievement between West Indonesian and East Indonesian regions. Further empirical analysis finds that integrated GICS maturity and corruption control effectiveness support local development by improving human development, inclusive economic development and reducing poverty. Risk management, however, has not contributed significantly to local development as the effect on the development measures is not significant. The study provides practical implications to the related government bodies for the sake of improving the integrated GICS in Indonesian local government to support the local development agenda. The local governments should commit to the integrated GICS implementation to safeguard public interests specifically in local development outcomes. The role of the Financial and Development Supervisory Agency (BPKP) is also essential to improve the implementation of integrated GICS in which adequate monitoring and regulation support are required.

The impact of whistle-blowing on the effectiveness of forensic audits and investigative audits in fraud detection: A multigroup analysis of gender and experience

The study investigates the impact of whistle-blowing, forensic audit, and investigative audit on fraud detection, with gender and experience serving as potential moderators. Structured equation modeling (SEM) is used to study the relationships between determinants. This study also seeks to understand the role of gender and experience in determining fraud detection through multigroup analysis. The data used for the analysis includes 97 auditors from the Supreme Audit Agency (BPK RI) and the Financial and Development Supervisory Agency (BPKP) who work in the investigation unit. The findings reveal that whistle-blowing positively and significantly influences forensic audit, investigative audit, and, ultimately, fraud detection. Both forensic and investigative audits also exhibit positive and significant impacts on fraud detection. Moderation effects of gender and experience were not observed in the relationships between whistle-blowing and the aforementioned audits or fraud detection. These findings suggest that the implementation of whistle-blowing systems can facilitate fraud reporting, improve early warning for fraud detection, and function as an effective oversight tool to prevent internal violations in government institutions. This study contributes valuable empirical evidence regarding the interplay between whistle-blowing, forensic and investigative audits, fraud detection, and the moderating roles of gender and experience. It effectively addresses knowledge gaps and offers potential contributions to existing theories, particularly concerning the nuanced influence of gender and experience on fraud detection.

The Influence of User Involvement and Personal Technical Skills on the Performance of Accounting Information Systems with Work from Home as a Moderator Variable

This research aims to analyze and demonstrate the influence of user involvement and personal technical skills on the performance of the Accounting Information System (AIS), with Work From Home (WFH) as a moderator variable. The study was conducted at the Financial and Development Supervisory Agency (BPKP) South Sulawesi Representative Office. The sampling technique employed was purposive sampling, and data collection was carried out through the distribution of questionnaires to respondents. Data analysis was conducted using Structural Equation Model Partial Least Square (SEM-PLS). The research findings revealed that user involvement and personal technical skills have a positive and significant impact on AIS performance. However, WFH does not have a significant effect or the ability to strengthen user involvement and personal technical skills in relation to AIS performance. The implications of this research underscore the necessity of user involvement during the development phase of accounting information systems. The study emphasizes the need for training to enhance the understanding and technical skills of accounting information system users.

The development of knowledge management implementation at the Financial and Development Supervisory Agency (BPKP)

The Financial and Development Supervisory Agency (BPKP), a pivotal public sector entity tasked with internal audit functions, recognizes the paramount importance of effectively managing auditors' experience and expertise. This study aims to delineate the Knowledge Management (KM) implementation stages within BPKP, a topic scarcely explored in Indonesian public-sector research. This study uses an abductive approach with a case study method by explaining a series of events over time with theory-based analysis. The results showed that the KM implementation in BPKP was carried out in four stages: preparation at the local level by conducting change management, work culture development, and initial research; implementation at the local level; implementation at the national level with a focus on the development of process, human, and technology aspects; and national development focuses on laying the groundwork for KM culture. There are KM implementation steps carried out by BPKP but not explained in the theory proposition: change management and developing a work culture that supports KM processes, initial research, benchmarking, and KM implementation regulations. BPKP needs to assess the maturity level of KM to determine the focus areas that need to be improved. This study contributes conceptually to KM frameworks tailored for public sector entities.