Designing a Risk-Based Review Plan for Accrual Based Local Government Financial Reports
DOI:
https://doi.org/10.47312/aar.v5i01.184Abstract
The application of Accrual-Based Government Accounting Standards (SAP) since 2015 still causes problems including misstatement in Local Government Financial Reports (LKPD). The role of the Inspectorate in minimizing these problems is manifested in conducting a review of LKPD. Preliminary research shows that the implementation of LKPD review in Bandung District has not been effective in detecting financial statement misstatements. This study aims to evaluate and design a risk-based review plan on accrual-based LKPD at the Bandung District Inspectorate, and also expected to be a guideline for Regional Government Inspectorates in planning LKPD reviews to generate government financial reports in accordance with SAP. This study uses a case study approach with qualitative methods. The results of the study show that the LKPD review planning at the Bandung District Inspectorate has been carried out according to regulations and IIA standards, but there are weaknesses at the stage of entity's understanding and risk identification. The design of review procedures that have not implemented a risk-based approach also has an impact on an ineffective review, therefore in this study a risk-based LKPD review plan was designed. The output of this review plan will contain testing procedures in accordance with the risk areas of the financial statements.
Downloads
References
Alhakim, A. (2015). Analisis atas Reviu Laporan Keuangan Pemerintah Daerah oleh Aparat Pengawasan Intern Pemerintah (APIP) pada Pemerintah Provinsi DKI Jakarta. Universitas Indonesia.
Ayagre, P. (2014). The Adoption of Risk Based Internal Auditing in Developing Countries: the Case of Ghanaian Companies. European Journals of Accounting Auditing and Finance Research, 2(7), 52–65.
Bekaiang, A. F., Sondakh, J. J., & Kalalo, M. Y. B. (2017). Pengaruh Prosedur Reviu Terhadap Kualitas Reviu Laporan Keuangan Pemerintah Daerah Di Kabupaten Minahasa Utara. Jurnal Riset Akuntansi Going Concern, 3(1), 1177–1204.
Coetzee, P., & Lubbe, D. (2014). Improving the efficiency and effectiveness of risk-based internal audit engagements. International Journal of Auditing, 18(2), 115–125. https://doi.org/10.1111/ijau.12016
COSO. (2004). Enterprise Risk Management-Executive Summary. Jersey City.
Creswell, J. W. (2014). Research Design- Qualitative, Quantitative, and Mixed Methods Approaches. London: SAGE Publications.
Efendi, R., Dewi, F. G., & Gamayuni, R. R. (2018). Usefulness Analysis Of Accrual Based Accounting Information On Local Government Financial Statement : A Qualitative Study. International Journal of Scientific & Technology Research, 7(11), 10–21.
Fraser, S. (2011). The Risk-Based Audit approach. Accounting, Tax & Banking Collection Pg. 54 Reproduced.
IAASB. (2016). Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. New York: IFAC.
IIA, T. I. of I. A. (2014). Risk Based Internal Auditing. Retrieved from https://global.theiia.org/standards-guidance/topics/Documents/201501GuidetoRBIA.pdf
IIA, T. I. of I. A. (2016). All in a Day ’s Work. https://doi.org/10.5465/AMR.2000.3363315
IIA, T. I. of I. A. (2017). International Standards for the Professional Practice of Internal Auditing (Standards).
International Federation of Accountants. (2011). Transition to the Accrual Basis of Accounting : Guidance for Governments and Government Entities.
Maulana; Djamhuri; Purwanti. (2017). Determinan Kualitas Reviu Dan Implikasinya Terhadap Kualitas Laporan Keuangan Pemerintah Daerah. Jurnal Economia, 13(2), 118–127. https://doi.org/10.21831/economia.v13i2.14980
Pickett, K. H. S. (2010). The Internal Auditing Handbook. Chichester: Willey.
PP No. 71. (2010). Peraturan Pemerintah No 71 Tahun 2010 tentang Standar Akuntansi Pemerintah, 11. https://doi.org/10.1017/CBO9781107415324.004
Presiden RI. Peraturan Pemerintah Nomor 8 Tahun 2006 tentang Pelaporan Keuangan dan Kinerja Instansi Pemerintah (2006).
R. Moeller, R. (2009). Brink ’ s Modern Internal Auditing Eighth Edition (8th ed.). New Jersey: Wiley.
R. Moeller, R. (2011). COSO ERM. New Jersey: Wiley.
Sarens, G., Abdolmohammadi, M. J., & Lenz, R. (2012). Factors associated with the internal audit function’s role in corporate governance. Journal of Applied Accounting Research, 13(2), 191–204. https://doi.org/10.1108/09675421211254876
Spraakman, G. (1997). Transaction cost economics: a theory for internal audit? Managerial Auditing Journal, 12(7), 323–330. https://doi.org/10.1108/02686909710180670
Sumanjaya. (2015). Optimalisasi penyelenggaraan reviu atas pelaporan keuangan pemerintah daerah: studi kasus pada Inspektorat Provinsi kepulauan bangka Belitung. Universitas Indonesia.
Widyarini, K., Made, N., & Ratnadi, D. (2016). Pengaruh Prosedur, Pendidikan, Tekanan Waktu, Dan Anggaran Reviu Pada Kualitas Reviu Laporan Keuangan Pemerintah Daerah. Jurnal Ekonomi Dan Bisnis Universitas Udayana, 455–488.
Williamson. (1985). The Economic Institutions of Capitalism. New York: The Free Press.
Yin, R. K. (2003). Applications of Case Study Research. Interpretive Interactionism (Second Edi). London: SAGE Publications.
Downloads
Published
Issue
Section
License
Authors who publish with this journal agree to the following terms:Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
