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The Effect of Preventive Control and Detective Control on the Effectiveness of Budget Implementation with Accountability as a Moderating Variable

Author

Listed:
  • Andi Novia Kartika Sari

    (Hasanuddin University, Makassar, Indonesia)

  • Ratna Ayu Damayanti

    (Hasanuddin University, Makassar, Indonesia)

  • Darmawati

    (Hasanuddin University, Makassar, Indonesia)

Abstract

The effectiveness of internal control significantly affects the organisation's strategic and operational goals and the completeness and adequacy of accounting and reporting data. Implementing various types of internal control increases the accountability of employees in decision-making and, in general, is one of the directions for improving managerial performance. The article aims to identify and analyse the impact of preventive and detective control on the effectiveness of budget implementation with accountability as a moderating variable. The object of the study is the district government in Sinjai Regency (Indonesia). The sample of this study is 90 respondents; in particular, they are officials of the III and IV echelons of the Government Agency and Regional Government Service in Sinjai Regency. Data collection was carried out using a questionnaire with a 5-point Likert scale. The questionnaire covers 20 indicators, the selection of which was made taking into account previous research on the topic. The methodological basis of the study is the multiple regression analysis (MRA) conducted in the SPSS program (Statistical Package for Social Sciences) version 25. The results of the study show that preventive and detective control has a positive effect on the effectiveness of budget implementation. Accountability as a moderating factor enhances the positive impact of these types of internal controls on the effectiveness of budget implementation in local governments in the Sinjai Regency (Indonesia). The results of this study are a guideline for increasing management efficiency in local government bodies based on the use of various types of internal control.

Suggested Citation

  • Andi Novia Kartika Sari & Ratna Ayu Damayanti & Darmawati, 2022. "The Effect of Preventive Control and Detective Control on the Effectiveness of Budget Implementation with Accountability as a Moderating Variable," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 118-123, June.
    • Handle: RePEc:iaf:journl:y:2022:i:2:p:118-123
    DOI: 10.33146/2307-9878-2022-2(96)-118-123
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    References listed on IDEAS

    as
    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    2. Cecilia Lelly Kewo & Cecilia Lelly Kewo, 2017. "The Influence of Internal Control Implementation and Managerial Performance on Financial Accountability Local Government in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 293-297.
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    More about this item

    Keywords

    effectiveness of budget implementation; accountability; preventive control; detective control; local government bodies;
    All these keywords.

    JEL classification:

    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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