DETERMINAN KELEMAHAN PENGENDALIAN INTERN PEMERINTAH DAERAH SUMATERA SELATAN

Authors

  • Citra Indah Merina Fakultas Ekonomi dan Bisnis, Universitas Bina Darma
  • Verawaty Fakultas Ekonomi dan Bisnis, Universitas Bina Darma
  • Diana Rahmawati Fakultas Ekonomi dan Bisnis, Universitas Bina Darma

Keywords:

Weakness of internal control, economic growth, size of local government, local revenue, regional complexity, capital expenditure

Abstract

The government internal control system is aimed at providing adequate assurance to achieve efficiency and effectiveness in achieving the objectives of state governance, reliability of financial reporting, safeguarding state assets, and compliance with laws and regulations. The purpose of this study is to examine the effect of economic growth, local government size, local revenue, regional complexity, and capital expenditure on the weakness in local government internal control. The sample was 17 local governments of South Sumatra in 2015-2017. The study used quantitative analysis techniques with multivariate regression. The results showed that only economic growth had a positive effect on the weakness in internal control. This is because the higher the economic growth, the level of internal control weakness will also be high so that the local government will further improve the quality of its internal control. Local governments must be monitored to ensure that management is carried out in full compliance with various regulations so that the possibility of committing fraud or corruption is less likely.

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Published

2021-03-23

Issue

Section

Articles