The Quality of Financial Reporting and Internal Control System before and after the Implementation of E-budgeting in Indonesia Local Government

Main Article Content

Wahyu Setyawan
Rindu Rika Gamayuni


This study aims to determine differences in the quality of financial reporting of local governments in Indonesia before and after implementation of the e-budgeting system and government internal control systems in the preparation and management of regional finances that are measured from the achievement of the Unqualified Opinion from the Audit Report of the Supreme Audit Board (LHP BPK) on the Local Government Financial Report (LKPD). The population of this research is all 542 local governments in Indonesia with a sample of research the local government in Indonesia that has implemented e-budgeting from 2017 until 2018. This research method is a quantitative empirical research method using secondary data with data analysis using an Independent sample T-test using SPSS 23 software.

The results of testing the hypothesis with a Independent Sample T-test using the SPSS 23 software indicate that there are significant differences between regions that have implemented e-budgeting system to the quality of its financial reporting with t value of 8.287 with 0.000 level of significance. Local governments that have implemented an e-budgeting have been able to obtain Unqualified opinions of 105 local Governments or around 96%, while the remaining 4 local governments have not been able to achieve Unqualified opinions or around 4%. While the average value of the quality of local government financial reporting that has not implemented e-budgeting with a score that is, 1.7354 were able to obtain Unqualified opinions of 284 local Governments or around 66%, while the remaining 149 local governments were only able to obtain Non Unqualified opinions or around 34%. 

The results of hypothesis testing with different T-test also showed that there was a significant difference between the average value of the quality of financial reporting of local governments that obtained Unqualified opinion with SPIP score of 2.4890, namely 367 local governments or about 92%, while the remaining 34 local governments have not been able to reach the Unqualified opinion or around 8%. While the average quality of the financial reporting of local governments that have an effective SPIP score of 1.7035 or at the SPIP pilot stage is only 22 local governments or around 16% capable of obtaining Unqualified opinion, while the remaining 119 local governments have not been able to achieve Unqualified opinion or around 84% with t value of 14,036 with 0.000 level of significance.

E-budgeting, government internal control, quality of financial reporting.

Article Details

How to Cite
Setyawan, W., & Gamayuni, R. R. (2020). The Quality of Financial Reporting and Internal Control System before and after the Implementation of E-budgeting in Indonesia Local Government. Asian Journal of Economics, Business and Accounting, 14(3), 22-31.
Short Research Article


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[Accessed on 17 July 2019]