The Effect of Audit Opinion and Corruption on Local Government Performance

• In Event: Saturday Breakfast with Research Roundtable Forum Session

Abstract

This study aims to examine the effect of prior year’s audit opinion on the performance of local government as well as how the level of corruption affects audit opinion and the performance of local government. The research population was all local governments in Indonesia with total sample of 360 observations in 2012. The result shows that prior year’s audit opinion positively affects the performance of local government. Moreover, this study found that the level of corruption weakens the effect of prior year’s audit opinion on the performance of local government.
Key word : prior year’s audit opinion, the performance of local government, level of corruption

Authors

• Prima Monika, Universitas Indonesia

• Akhmad Syahroza, Universitas Indonesia

• Vera Diyanti, fakultas ekonomi universitas indonesia