Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020, 5 - 6 August 2020, Purwokerto, Indonesia

Research Article

The Local Government Performance as Mediating Variable on the influence of Internal Control System on The Financial Statement Accountability: Evidence in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.5-8-2020.2301185,
        author={Andy Dwi Bayu Bawono and Khadijah MD Arifin and Heppy  Purbasari and Andika Elis Saputra},
        title={The Local Government Performance as Mediating Variable on the influence of Internal Control System on The Financial Statement Accountability: Evidence in Indonesia},
        proceedings={Proceedings of the 2nd International Conference of Business, Accounting and Economics, ICBAE 2020,  5 - 6 August 2020, Purwokerto, Indonesia},
        publisher={EAI},
        proceedings_a={ICBAE},
        year={2020},
        month={10},
        keywords={new public management good governance internal control system local government performance financial statement accountability accrual accounting},
        doi={10.4108/eai.5-8-2020.2301185}
    }
    
  • Andy Dwi Bayu Bawono
    Khadijah MD Arifin
    Heppy Purbasari
    Andika Elis Saputra
    Year: 2020
    The Local Government Performance as Mediating Variable on the influence of Internal Control System on The Financial Statement Accountability: Evidence in Indonesia
    ICBAE
    EAI
    DOI: 10.4108/eai.5-8-2020.2301185
Andy Dwi Bayu Bawono1,*, Khadijah MD Arifin2, Heppy Purbasari1, Andika Elis Saputra1
  • 1: Department of Accounting, Universitas Muhammadiyah Surakarta, Jl. Ahmad Yani, Tromol Pos I, Pabelan, Surakarta, Jawa Tengah, Indonesia
  • 2: Department of Real Estate Management, Universiti Tun Hussein Onn, 86400 Parit Raja, Johor, Malaysia
*Contact email: andy.bawono@ums.ac.id

Abstract

This study aims to examine the effect of local government internal control systems on the local financial statements accountability by using local governments' performance as the mediating variable. The internal control system was used as the dependent variable while financial report accountability was used as the independent variable. The population of this study consists of all local governments throughout Java Island, which financial statements had been published as at December 31, 2015 and audited by the Indonesian Government Supreme Auditor. This study adopted purposive sampling method as a way for selecting samples which resulted a total of 108 local governments involved. The multiple regression analysis was used for testing the data involved. The findings show that by using government’s performance as the mediating variable resulted a more significant effect compared to the direct influence of internal control system to financial statement accountability.