BPK FINDINGS TRENDS ON INTERNAL CONTROL SYSTEMS IN LOCAL GOVERNMENT FINANCIAL STATEMENTS

Earlyanzen Mustika Leka; Bambang Sutopo

doi:10.32938/ie.v7i3.9853

Authors

Earlyanzen Mustika Leka Universitas Sebelas Maret
Bambang Sutopo

DOI:

https://doi.org/10.32938/ie.v7i3.9853

Keywords:

SPIP, LKPD, Control Activities, Internal Control

Abstract

Abstract

This study investigates the trends and distribution of weaknesses in the Government Internal Control System (SPIP) based on audit findings from the Audit Board of the Republic of Indonesia (BPK) on the Local Government Financial Statements (LKPD) during the period 2019–2023. The research employs quantitative descriptive analysis and ANOVA testing to examine patterns and identify whether there are statistically significant differences in the occurrence of internal control weaknesses across the five-year span. The results reveal that the most dominant weaknesses were found in the element of control activities, especially in the execution of expenditures that did not comply with regulations, inaccurate or incomplete accounting records, and ineffective internal supervision. In addition, weaknesses in the control environment—such as incomplete standard operating procedures (SOPs), lack of proper segregation of duties, and suboptimal functioning of internal inspectorates—persisted across the observed years. The ANOVA test showed no statistically significant differences between the years (P-value > 0.05), indicating limited effectiveness of implemented improvements. These findings emphasize the urgency of strengthening the internal control system comprehensively through institutional reform, enhanced monitoring capacity, increased professionalism of personnel, and integration of information technology to promote transparency, accountability, and sustainable financial governance in local governments.

References

Badara, M. S. (2013). Impact of the Effective Internal Control System on the Internal Audit Effectiveness at Local Government Level. Journal of Social and Development Sciences, 4(1), 16–23. https://doi.org/10.22610/jsds.v4i1.731

COSO. (2012). Internal Control—Integrated Framework.

Drummond, G. B., & Vowler, S. L. (2012). Analysis of variance: Variably complex. British Journal of Pharmacology, 166(3), 801–805. https://doi.org/10.1111/j.1476-5381.2012.01893.x

Hadianto, A., V. Salomo, R., & Panggabean, M. (2018). Built the Effective Internal Control System in Local Governments of Developing Countries : A Case Study on Tegal City. International Journal of Engineering & Technology, 7(2.29), 997. https://doi.org/10.14419/ijet.v7i2.29.14296

Herawati, T. (2014). Pengar uh Sistem Pengendalian I nter n Ter hadap Kualitas Lapor an Keuangan ( Sur vei Pada Or ganisasi Per angkat Daer ah Pemda Cianjur ), XI(1), 1–14.

Jeffrey Cohen, Ganesh Krishnamoorthy, A. W. (2017). Enterprise Risk Management and the Financial Reporting Process: The Experiences of Audit Committee Members, CFOs, and External Auditors, 1–23.

Jeriansyah, W., & Mappanyukki, R. (2020). The Effect of Accountability and Transparency of Regional Financial Management on Local Government Performance. International Journal of Asian Social Science, 10(12), 721–729. https://doi.org/10.18488/journal.1.2020.1012.721.729

Kamal, M., & Elim, J. (2021). The Strategy to Optimize the Role of Government Internal Supervisory Apparatus (APIP) in Procurement Fraud Risk Management in Industry 4.0. Jurnal Tata Kelola Dan Akuntabilitas Keuangan Negara, 7(2), 151–168. https://doi.org/10.28986/jtaken.v7i2.588

Kamara, A. K. (2023). The Study on Effectiveness of Internal Audit on the Performance of the Public Sector in Sierra Leone: A Case Study of the National Social Security Insurance Trust. OALib, 10(08), 1–30. https://doi.org/10.4236/oalib.1110431

Karsam, K., Ariyanto, S., & Putro, D. P. (2019). Have the Implementation of Financial Application Sys-tem and Management of State Property Improved Fi-nancial Report Quality in Indonesia? Journal of Accounting Research, Organization and Economics, 2(2), 170–183. https://doi.org/10.24815/jaroe.v2i2.14634

Marcus R. Maspaitella & Mona Permatasari Mokodompit. (2022). The Anticedents of Local Government Financial Report Quality, 06(01), 31–38. https://doi.org/10.4108/eai.1-10-2020.2305639

Mery Juliana, Periansya, I. S. (2025). Faktor – Faktor Yang Mempengaruhi Efektivitas Sistem Pengendalian Intern ( Studi Pada OPD Pemerintah Provinsi Sumatera Selatan ) Abstrak, 11(1), 366–376.

Moeller, B. R. R. (2012). Establishing Internal Controls Through COSO. Sarbanes‐Oxley Internal Controls, 83–117. https://doi.org/10.1002/9781119197119.ch4

Paneo, F., Sondakh, J. J., & Morasa, J. (2017). Penerapan Sistem Pengendalian Intern Pemerintah (SPIP) Pada Kabupaten Gorontalo. Jurnal Riset Akuntansi Dan Auditing “Goodwill,” 8(2), 213–222. https://doi.org/10.35800/jjs.v8i2.18132

Pongoliu, R. R., Saerang, D., & Manossoh, H. (2017). Analisis Kendala Penyelesaian Tindak Lanjut Hasil Pemeriksaan BPK Pada Pemerintah Provinsi Gorontalo. Jurnal Riset Akuntansi Dan Auditing “Goodwill,” 8(1), 1–10. https://doi.org/10.35800/jjs.v8i1.15254

Rahim, S. A. A., Nawawi, A., & Salin, A. S. A. P. (2017). Internal control weaknesses in a cooperative body: Malaysian experience. International Journal of Management Practice, 10(2), 131–151. https://doi.org/10.1504/IJMP.2017.083082

Raspati, G., & Riyanto, A. (2021). The Effectiveness of The Implementation of SPIP and SIMDA Its Impact Against The Quality of Financial Statements. Jurnal Ecodemica: Jurnal Ekonomi, Manajemen, Dan Bisnis, 5(1), 28–39. https://doi.org/10.31294/jeco.v5i1.9220

Taufik, T. (2019a). The effect of internal control system implementation in realizing good governance and its impact on fraud prevention. International Journal of Scientific and Technology Research, 8(9), 2159–2165.

Taufik, T. (2019b). The Effect Of Internal Control System Implementation In Realizing Good Governance And Its Impact On Fraud Prevention, 8(09), 2159–2165.

Thabit, T. H., Solaimanzadah, A., & Al-Abood, M. T. (2017). The Effectiveness of COSO Framework to Evaluate Internal Control System: The Case of Kurdistan Companies. Cihan International Journal of Social Science, 1(1), 44–54.