The effectiveness of local government financial statement audit by public accounting firm

Rifatul Fauzia; Dyah Setyaningrum; Dwi Martani

doi:10.1504/IJTGM.2022.120902

The effectiveness of local government financial statement audit by public accounting firm

Rifatul Fauzia, Dyah Setyaningrum, Dwi Martani

Department of Accounting

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

This study analyses the audit quality of a public accounting firm (PAF) and the Audit Board of the Republic of Indonesia (SAI). Data were obtained from two groups of samples consisting of government institutions audited by PAF and SAI in 2014 and 2015, with the regression test used to determine the hypothesis. The results show that the audit performed by the SAI has a better quality compared to audits conducted by the PAF. The SAI obtain more findings in terms of the number of the internal control system weaknesses and the non-compliance findings. Furthermore, the results also show no significant differences in the audit time required by PAF and SAI. This result aids the SAI to evaluate the use of PAF’s in implementing actions to minimise the weaknesses of the audit program by PAF’s.

Original language	English
Pages (from-to)	79-87
Number of pages	9
Journal	International Journal of Trade and Global Markets
Volume	15
Issue number	1
DOIs	https://doi.org/10.1504/IJTGM.2022.120902
Publication status	Published - 14 Feb 2022

Keywords

Audit quality
Findings
Public accounting firm
SAI
Supreme Audit Institutions
Time

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1504/IJTGM.2022.120902

Cite this

@article{d3404ef9b3da40c4b575e7ae52eea235,

title = "The effectiveness of local government financial statement audit by public accounting firm",

abstract = "This study analyses the audit quality of a public accounting firm (PAF) and the Audit Board of the Republic of Indonesia (SAI). Data were obtained from two groups of samples consisting of government institutions audited by PAF and SAI in 2014 and 2015, with the regression test used to determine the hypothesis. The results show that the audit performed by the SAI has a better quality compared to audits conducted by the PAF. The SAI obtain more findings in terms of the number of the internal control system weaknesses and the non-compliance findings. Furthermore, the results also show no significant differences in the audit time required by PAF and SAI. This result aids the SAI to evaluate the use of PAF{\textquoteright}s in implementing actions to minimise the weaknesses of the audit program by PAF{\textquoteright}s.",

keywords = "Audit quality, Findings, Public accounting firm, SAI, Supreme Audit Institutions, Time",

author = "Rifatul Fauzia and Dyah Setyaningrum and Dwi Martani",

note = "Publisher Copyright: Copyright {\textcopyright} 2022 Inderscience Enterprises Ltd.",

year = "2022",

month = feb,

day = "14",

doi = "10.1504/IJTGM.2022.120902",

language = "English",

volume = "15",

pages = "79--87",

journal = "International Journal of Trade and Global Markets",

issn = "1742-7541",

publisher = "Inderscience",

number = "1",

}

TY - JOUR

T1 - The effectiveness of local government financial statement audit by public accounting firm

AU - Fauzia, Rifatul

AU - Setyaningrum, Dyah

AU - Martani, Dwi

PY - 2022/2/14

Y1 - 2022/2/14

N2 - This study analyses the audit quality of a public accounting firm (PAF) and the Audit Board of the Republic of Indonesia (SAI). Data were obtained from two groups of samples consisting of government institutions audited by PAF and SAI in 2014 and 2015, with the regression test used to determine the hypothesis. The results show that the audit performed by the SAI has a better quality compared to audits conducted by the PAF. The SAI obtain more findings in terms of the number of the internal control system weaknesses and the non-compliance findings. Furthermore, the results also show no significant differences in the audit time required by PAF and SAI. This result aids the SAI to evaluate the use of PAF’s in implementing actions to minimise the weaknesses of the audit program by PAF’s.

AB - This study analyses the audit quality of a public accounting firm (PAF) and the Audit Board of the Republic of Indonesia (SAI). Data were obtained from two groups of samples consisting of government institutions audited by PAF and SAI in 2014 and 2015, with the regression test used to determine the hypothesis. The results show that the audit performed by the SAI has a better quality compared to audits conducted by the PAF. The SAI obtain more findings in terms of the number of the internal control system weaknesses and the non-compliance findings. Furthermore, the results also show no significant differences in the audit time required by PAF and SAI. This result aids the SAI to evaluate the use of PAF’s in implementing actions to minimise the weaknesses of the audit program by PAF’s.

KW - Audit quality

KW - Findings

KW - Public accounting firm

KW - SAI

KW - Supreme Audit Institutions

KW - Time

UR - http://www.scopus.com/inward/record.url?scp=85124991663&partnerID=8YFLogxK

U2 - 10.1504/IJTGM.2022.120902

DO - 10.1504/IJTGM.2022.120902

M3 - Article

AN - SCOPUS:85124991663

SN - 1742-7541

VL - 15

SP - 79

EP - 87

JO - International Journal of Trade and Global Markets

JF - International Journal of Trade and Global Markets

IS - 1

ER -

The effectiveness of local government financial statement audit by public accounting firm

Abstract

Keywords

UN SDGs

Access to Document

Other files and links

Fingerprint

Cite this