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

Muhammad Din, Munawarah, Imam Ghozali, Tarmizi Achmad
European Research Studies Journal, Volume XX, Issue 4A, 443-459, 2017
EOI: 10.11214/thalassinos.20.06.031

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.


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