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The Follow Up of Auditing Results, Accountability of Financial Reporting and Mediating Effect of Financial Loss Rate: An Empirical Study in Indonesian Local Governments

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  • Muhammad Din
  • Munawarah
  • Imam Ghozali
  • Tarmizi Achmad

Abstract

This study aimed to analyze the effect of the follow-up of financial investigation results on the financial reporting accountability and to examine the influence of follow-up of financial investigation on the level of financial losses. This research was conducted in all the municipalities and cities in Indonesia by purposive sampling method from the period of 2011-2014, with the number of observations as much as in 1152. Data analysis was performed with the Structural Equation Model (SEM) with Warp-PLS Program 5.0 and Sobel test method to test the mediating variable. The results showed that follow-up of financial investigation reduces the level of financial losses, thereby increasing the accountability of local government financial reporting.

Suggested Citation

  • Muhammad Din & Munawarah & Imam Ghozali & Tarmizi Achmad, 2017. "The Follow Up of Auditing Results, Accountability of Financial Reporting and Mediating Effect of Financial Loss Rate: An Empirical Study in Indonesian Local Governments," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 443-459.
    • Handle: RePEc:ers:journl:v:xx:y:2017:i:3a:p:443-459
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    2. Faiz Zamzami & Fuad Rakhman, 2023. "Determinants of Local Government Financial Performance in Indonesia," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 12, September.
    3. Supriadi Laupe, 2018. "Role of Culture and Law Enforcement in Determining the Level of IFRS Adoption," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 56-64.
    4. Pilipus Ramandei & Abdul Rohman & Dwi Ratmono & Imam Ghozali, 2020. "Interactions of Financial Assistance and Financial Reporting Competency: Evidence From Local Government in Papua and West Papua Indonesia," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 1-12, January.
    5. N. Mangun & C. Anwar & M. Moelyono & E. Jokolelono, 2018. "Analyzing the Degree of Social-Economic Transformation of Displaced Community Using Probit Model: A Case Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 256-264.

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