Analyzing Audit Follow-Up Performance: Comparison Before and During SIPTL Application Implementation

Vol 7 No 12 (2024): Volume 07 Issue 12 December 2024

Article Date Published : 25 December 2024 | Page No.: 9176-9188 | Google Scholar | Crossref doi for this article

Abstract :

This study examines the impact of the SIPTL system on the performance of local governments in Indonesia in addressing audit recommendations. Using a quasi-experimental approach, the research compares follow-up performance data before (2015-2016) and after (2017-2023) the SIPTL implementation. Paired sample t-tests reveal substantial improvements in the volume and compliance of follow-up actions, along with a significant reduction in unresolved recommendations during the SIPTL period. These findings indicate that the SIPTL system has enhanced the efficiency and effectiveness of audit processes, promoting better governance and accountability. The study highlights the potential of digital platforms like SIPTL to streamline public sector oversight and reduce financial irregularities, offering valuable insights for policymakers and system developers. By providing empirical evidence of SIPTL’s sustained impact on governance, this research contributes to the broader discourse on leveraging information systems for improved public sector accountability.

Keywords :

audit follow-up performance, governance and accountability, local governments, public sector oversight., quasi-experimental design, SIPTL system

References :

  1. Abdullah, M. I., Sudirman, Masdar, R., Din, M., & Firman, M. F. (2022). Antecedents of the Accountability in Indonesian Local Government Financial Reporting. International Journal of Professional Business Review, 7(5), e0709. https://doi.org/10.26668/businessreview/2022.v7i5.e709
  2. Ahmad, H., Mokhtar, N., & Ismail, S. (2023). Bibliometric Analysis and Review of Digital Audit Practices in the Public Sector of Different Countries. IPN Journal of Research and Practice in Public Sector Accounting and Management, 13(2). https://doi.org/10.58458/ipnj.v13.02.03.0094
  3. Alotaibi, E. M., & Alnesafi, A. (2023). Assessing the impact of audit software on audit quality: Auditors’ perceptions. International Journal of Applied Economics, Finance and Accounting, 17(1), 97–108. https://doi.org/10.33094/ijaefa.v17i1.1068
  4. Amali, L. N., Katili, M. R., Suhada, S., Hadjaratie, L., & Mardlatillah, H. (2022). Technology Acceptance Model in Government Context: A Systematic Review on the Implementation of IT Governance in a Government Institution. Jurnal Online Informatika, 7(1), 80. https://doi.org/10.15575/join.v7i1.853
  5. Ansell, C., & Miura, S. (2020). Can the power of platforms be harnessed for governance? Public Administration, 98(1), 261–276. https://doi.org/10.1111/padm.12636
  6. Asrori, Nur Hasanah, J., & Ihlashul ‘Amal, M. (2020). Determinants of Financial Performance of Regional Government Revenue Growth in Central Java Province, Indonesia. KnE Social Sciences, 12(5), 332. https://doi.org/10.18502/kss.v4i6.6632
  7. Aswar, K. (2019). Financial Performance of Local Governments in Indonesia. European Journal of Business and Management Research, 4(6). https://doi.org/10.24018/ejbmr.2019.4.6.164
  8. Azalan, N. S., Mokhtar, M. M., & Abdul Karim, A. H. (2022). Modelling e-Zakat Acceptance among Malaysian: An Application of UTAUT Model during Covid19 Pandemic. International Journal of Academic Research in Business and Social Sciences, 12(12). https://doi.org/10.6007/ijarbss/v12-i12/15958
  9. Cordella, A., & Paletti, A. (2019). Government as a platform, orchestration, and public value creation: The Italian case. Government Information Quarterly, 36(4). https://doi.org/10.1016/j.giq.2019.101409
  10. Cordery, C. J., & Hay, D. (2019). Supreme audit institutions and public value: Demonstrating relevance. Financial Accountability & Management, 35(2), 128–142. https://doi.org/10.1111/faam.12185
  11. Danu, D. E. A., Supardi, S., Sutanto, S. T. J. P., & Riko, R. S. (2023). E-Services: Implementation of Digital-Based Public Services in The 4.0 Era. Athena: Journal of Social, Culture and Society, 1(3), 87–92. https://doi.org/10.58905/athena.v1i3.40
  12. de Widt, D., Llewelyn, I., & Thorogood, T. (2022). Liberalising audit markets for local government: The five forces at work in England and the Netherlands. Financial Accountability and Management, 38(3), 394–425. https://doi.org/10.1111/faam.12302
  13. Djaisin, Y. C. (2021, September). Tindak Lanjut Rekomendasi BPK Harus Bermanfaat. Warta Pemeriksa, IV, 22–23.
  14. ELKheshin, S., & Saleeb, N. (2020). Assessing the Adoption of E-government Using Tam Model: Case of Egypt. International Journal of Managing Information Technology, 12(1), 1–14. https://doi.org/10.5121/ijmit.2020.12101
  15. Furqan, A. C., Wardhani, R., Martani, D., & Setyaningrum, D. (2020). The effect of audit findings and audit recommendation follow-up on the financial report and public service quality in Indonesia. International Journal of Public Sector Management, 33(5), 535–559. https://doi.org/10.1108/IJPSM-06-2019-0173
  16. Garrett, P. M., Wang, Y., White, J. P., Kashima, Y., Dennis, S., & Yang, C.-T. (2021). High national acceptance for COVID-19 contact tracing technologies in Taiwan (Preprint). https://doi.org/10.2196/preprints.31522
  17. Hadi, A. (2018). Bridging Indonesia’s Digital Divide: Rural-Urban Linkages? Jurnal Ilmu Sosial Dan Ilmu Politik, 22(1), 17. https://doi.org/10.22146/jsp.31835
  18. Han, Y., & Xie, L. (2023). Sustainable Governance of Digital Platform Ecosystem: A Life Cycle Perspective through Multiple Governance Parties. https://doi.org/10.20944/preprints202306.1886.v1
  19. Hari Setiabudi Husni, Ford Lumban Gaol, Suhono Harso Supangkat, & Benny Ranti. (2022). DIGITAL TWIN CONCEPT FOR INDONESIA DIGITAL GOVERNMENT INFORMATION TECHNOLOGY GOVERNANCE. International Journal Science and Technology, 1(2), 45–52. https://doi.org/10.56127/ijst.v1i2.146
  20. He, K., Pan, X., Tian, G. G., Wu, Y., & Cai, C. (2022). How Does Reciprocal Rent-Seeking Between Politicians and Auditors Influence Audit Quality? Evidence from China. Accounting Horizons, 36(3), 103–126. https://doi.org/10.2308/HORIZONS-19-118
  21. Hendri Wijaya, J. (2023). E-Government in Indonesia: Policy Review and Implementation of Jokowi’s Government. TheJournalish: Social and Government, 4(3), 302–309. https://doi.org/10.55314/tsg.v4i3.563
  22. Indra, I., Iskak, J., & Khaq, A. (2022). Enhancing the Role of the Audit Board of the Republic of Indonesia in Fraud Detection. Jurnal Tata Kelola Dan Akuntabilitas Keuangan Negara, 131–143. https://doi.org/10.28986/jtaken.v8i2.935
  23. Indriani, D., Tinangon, J. J., & Budiarso, N. S. (2024). 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 Contrarian : Finance, Accounting, and Business Research, 3(2), 113–124. https://doi.org/10.58784/cfabr.159
  24. Koskelainen, T., Kalmi, P., Scornavacca, E., & Vartiainen, T. (2023). Financial literacy in the digital age—A research agenda. Journal of Consumer Affairs, 57(1), 507–528. https://doi.org/10.1111/joca.12510
  25. Larasati, N. F., Aprilia, D., Pastika, D. B. W., Wahyudi, I. A., & Anandita, D. A. (2022). INVESTMENT OF INSURANCE FUNDS AS AN ALTERNATIVE TO INFRASTRUCTURE FINANCING THROUGH GOVERNMENT AND PRIVATE COOPERATION IN THE MIDST OF COVID-19 PANDEMIC. International Journal of Economics, Business and Accounting Research (IJEBAR), 6(2). https://doi.org/10.29040/ijebar.v6i2.5232
  26. Liu, M., & Wu, G. (2024). Development and Application of Enterprise Financial Risk Analysis System Based on Data Mining Technology (pp. 75–81). https://doi.org/10.2991/978-94-6463-262-0_9
  27. Luo, Y., Tang, Z., Cai, X., & Chen, Y. (2023). A Review of Research on Digital Platform Governance in China: Hotspots, Characteristics, and Frontiers (pp. 1170–1177). https://doi.org/10.2991/978-2-38476-126-5_130
  28. Lutfi, A., & Alqudah, H. (2023). The Influence of Technological Factors on the Computer-Assisted Audit Tools and Techniques Usage during COVID-19. Sustainability (Switzerland), 15(9). https://doi.org/10.3390/su15097704
  29. Mainingrum, R., Sjarlis, S., Oktaviani, A. R., & Reno Fithri Meuthia. (2023). The Effect of Audit Findings, Follow-Up Audit Recommendations, And BPK Opinions from The Previous Year on The Determination of Opinions in Local Government Financial Statements. Economics, Business, Accounting & Society Review, 2(1), 58–73. https://doi.org/10.55980/ebasr.v2i1.56
  30. Mensah, I. K. (2020). The Impact of Political Trust on E-Government Services Adoption. International Journal of Technology Diffusion, 11(4), 27–47. https://doi.org/10.4018/IJTD.2020100102
  31. Noor, N. R. A. M., Ramayah, T., Khadzil, S. A. A. J. S., Noor, N. H. H. M., & Yusof, W. Y. R. B. W. (2023). SCOPE OF AUDIT AND EFFECTIVENESS OF PUBLIC SECTOR AUDIT IN MALAYSIA. International Journal of Business and Society, 24(1), 330–342. https://doi.org/10.33736/ijbs.5619.2023
  32. Noviani, N., & Muda, I. (2022, July 27). The Evolution of Accounting Software: Review of Blockchain Technology in Audit. https://doi.org/10.4108/eai.25-11-2021.2318839
  33. Nurhadianto, T., & Sugiri, S. (2022). Transparency of Local Financial Management: Evidence from Local Governments in Indonesia. Journal of Government and Civil Society, 6(1), 50. https://doi.org/10.31000/jgcs.v6i1.5433
  34. Okfitasari, A., Nur Rohmah, S., & Novianingsih, R. (2022). INFORMATION TECHNOLOGY AND REMOTE AUDIT DURING COVID 19 PANDEMIC. Proceeding of International Conference on Science, Health, And Technology, 136–144. https://doi.org/10.47701/icohetech.v3i1.2213
  35. Otuma O. Andako. (2023). Navigating the path to economic empowerment: overcoming challenges in digital platforms for economic empowerment. World Journal of Advanced Research and Reviews, 20(3), 1503–1521. https://doi.org/10.30574/wjarr.2023.20.3.1450
  36. Prabhawa, W., & Prasojo, E. (2021). Integritas Badan Pemeriksa Keuangan Sebagai Supreme Audit Institution. Sospol, 7(1), 1–17. https://doi.org/10.22219/sospol.v7i1.14609
  37. Rahmasari, A., & Setiawan, D. (2022). Maturity of Internal Control System, the Capability of Internal Auditors, and Performance Accountability in Local Governments. Jurnal Tata Kelola Dan Akuntabilitas Keuangan Negara, 159–176. https://doi.org/10.28986/jtaken.v8i2.830
  38. Rumasukun, M. R. (2024). Developing Auditor Competencies through Continuous Training and Education. Golden Ratio of Auditing Research, 4(1), 14–23. https://doi.org/10.52970/grar.v4i1.384
  39. Samuel Onimisi Dawodu, Adedolapo Omotosho, Zainab Efe Egieya, Abimbola Oluwatoyin Adegbite, & Sarah Kuzankah Ewuga. (2023). Advancements in computer-aided audit technologies: Impact on loan asset quality in banking. World Journal of Advanced Research and Reviews, 20(3), 876–887. https://doi.org/10.30574/wjarr.2023.20.3.2554
  1. Setyaningrum, D., & Azhar, K. (2015, November). The Effect of Audit Findings and Follow up of Audit Recomendation on Corruption of Ministries / Institutions in Indonesia. www.transparency.org
  2. Setyaningrum, D., Gani, L., Martani, D., & Kuntadi, C. (2013). The Effect of Auditor Quality on the Follow-Up of Audit Recommendation. International Research Journal of Business Studies, 6(2), 89–104. https://doi.org/10.21632/irjbs.6.2.89-104
  1. Sulistiyo, A. (2023). Influencers perceived usefulness, perceived ease of use and organizational support for the use of e-performance applications using technology acceptance models in regional work units Brebes Regency. Gema Wiralodra, 14(2), 730–735. https://doi.org/10.31943/gw.v14i2.390
  2. Susanto, T. D., Zakariya, A. Z., & Zulandra, R. (2018). What Motivate Government Employees to Use an e-Government System? The Adopter Profiles and Acceptance Factors. Research Journal of Applied Sciences, Engineering and Technology, 15(4), 143–148. https://doi.org/10.19026/rjaset.15.5845
  3. Torfing, J., & Bentzen, T. Ø. (2020). Does stewardship theory provide a viable alternative to control-fixated performance management? Administrative Sciences, 10(4). https://doi.org/10.3390/admsci10040086
  4. Ullah, S., Hussain, S. I., Nabi, A. A., & Mubashir, K. A. (2022). Role of Regulatory Governance in Financial Stability: A Comparison of High and Low Income Countries. Journal of Central Banking Theory and Practice, 11(1), 207–226. https://doi.org/10.2478/jcbtp-2022-0009
  5. Ummah, A., Maryam, S., & Wahidin, D. T. S. (2022). E-Government Implementation to Support Digital Village in Indonesia: Evidence from Cianjur Village, Bogor Regency. Jurnal Studi Sosial Dan Politik, 6(2), 245–259. https://doi.org/10.19109/jssp.v6i2.14038
  6. Van Puyvelde, S., Caers, R., Du Bois, C., & Jegers, M. (2016). Managerial Objectives and the Governance of Public and Non-Profit Organizations. Public Management Review, 18(2), 221–237. https://doi.org/10.1080/14719037.2014.969760
  1. Viendyasari, M. (2020). The Application of Digital Administration to Minimize Maladministration in Public Services: A Case Study of Jakarta Investment and One Stop Service Department. Proceedings of the 3rd International Conference on Vocational Higher Education (ICVHE 2018). https://doi.org/10.2991/assehr.k.200331.133
  2. Yamin, R., Mas’ud, M., & Sjarlis, S. (2022). Management of Assets and Follow-Up the Findings of the Audit Board to Increase Financial Performance of Local Governments. Economics, Business, Accounting & Society Review, 1(1), 37–43. https://doi.org/10.55980/ebasr.v1i1.8
  3. Yatun, I. (2021, September). Rekomendasi Jangan Sampai “Basi.” Warta Pemeriksa, IV, 4–6.
  4. Yusuf, M. (2020). The Impact of Local Government Accounting Systems and Performance-Based Budgeting on Local Government Performance Accountability. Jurnal Economic Resource, 3(2). https://doi.org/10.57178/jer.v3i2.225
  5. Zhang, Z. (2023). Analysis of Digital Transformation of Financial Management in the Era of Artificial Intelligence. Highlights in Business, Economics and Management, 23, 876–882. https://doi.org/10.54097/v4nj7935

How to Cite :

Analyzing Audit Follow-Up Performance: Comparison Before and During SIPTL Application Implementation. Ahmad Jaelani, Jamaludin Iskak, 7(12), 9176-9188. Retrieved from https://ijcsrr.org/single-view/?id=20566&pid=20140

Most read articles by the same author(s)

Ahmad Jaelani, Jamaludin Iskak,

View

274

Citation

Downloads

Article Details