The influence of Competence Local Government Agencies and The Implementation Government of Internal Control System Toward The Quality of Local Government Financial Statement

Abstract

The results audit from government external auditor (Badan Pemeriksa Keuangan (BPK) of the financial statements show the local govenments of Bandung until now get qualified opinion. The Government of Bandung City has made improvements, but there are still 12 internal control system weakness and the competence of the local government agencies have not ben adequate to financial statements local governments Bandung City.The Regulation (Undang-Undang Nomor 23 Tahun 2014) about the Local Government roles, has been conducted. The policy implementation and the government performance are the responsibility of the Local Government agencies. To support the agencies, the government organizes and conducts the internal control system,government rules(Peraturan Pemerintah Nomor 60 Tahun 2008). Therefore, a good system will be reached if the agencies improve the quality and the competency. The professional attitude will provide an excellent financial report to public sector.The research aims to know the competency and the internal control system of financial statement of the Local government in Bandung.The data collection have been done in 17 Departments of Bandung Government and Inspectorate of Bandung by disseminating a questionnaire to every employees in finance sectors and auditors. The analysis using a multiple linear regression with SPSS 20.0 program for windows.The result shows that with partially nor simultaneously the competency of the Local Government agencies and Internal Control System give a positive impact to the financial statement local government. Expected an improvement in the Government apparatus enhance knowledge and risk of assessment in order to produce a financia statement of the Government get more quality.

Keyword: The Competence of Local Government Agencies, The Government of Internal Control System,  The Quality of Local Government Financial Statement