Analysis of the Effectiveness of Internal Control Systems on Regional Financial Management in the North Maluku Provincial Government
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 11
Abstract
This study examines the performance of the Internal Control System (ICS) in the management of regional finance in the North Maluku Provincial Government. The research employed a descriptive qualitative methodology, utilizing primary data gathered through direct observation and interviews, alongside secondary data acquired from the BPK Audit Report (LHP). This study determined that the implementation of ICS has not been fully effective, based on the analysis of the five components of ICS as per Government Regulation (PP) No. 60/2008, aligned with the COSO framework. Notwithstanding attempts to enhance the control environment, the disparity between employees’ credentials and their responsibilities, along with deficiencies in risk assessment and control activities, suggests the presence of issues. Critical findings indicated that the assets were inaccurately documented, and the potential for unregulated budget management persisted. Furthermore, there was little communication among authorities within the responsibility transfer system. This study found that inadequate ICS can elevate the probability of misstatements in financial reports and obstruct local government initiatives aimed at attaining transparency and accountability in fund administration. This research aims to assist stakeholders in enhancing the future implementation of ICS.
Authors and Affiliations
Putu Diana Sri Lestari, F. X. Kurniawan Tjakrawala,
Keywords
Related Articles
- EP ID EP752124
- DOI 10.47191/ijcsrr/V7-i11-52
- Views 49
- Downloads 0
Several Teaching Methods Combined with the Support of AI Chatbot to Develop Self-Learning Competency for Students
Developing competency and especially self-study competency for students is one of the requirements in the 2018 General Education Program. Developing self-study competency for students is an inevitable trend of all times....
Green Accounting, Financial Performance, and Company Value: A Bibliometric Study
This research aims to examine the interconnection between green accounting, financial performance, and company value. This study employs a bibliometric approach utilizing bibliographic coupling and co-occurrence analysis...
Determinants of Financial Literacy, Digital Literacy, Internet Penetration and Consumer Confidence Level Mediated by Fintech Growth on Retail Industry Growth in Indonesia
This study evaluates how financial literacy, digital literacy, internet penetration, and consumer confidence influence retail industry growth in Indonesia, emphasizing the mediating role of fintech. In the era of industr...
A Green approach of Ag and Au Nanoparticles, Properties and its Applications: A Review
The emergence of nanotechnology has transformed antimicrobial and cancer treatment methodologies employed by clinicians. Conventional approaches, such as, radiotherapy, hormonal therapy and chemotherapy, now have a conte...
The Analysis of Job Satisfaction and Employee Experience on Turnover Intention in Telecommunication Service Companies
Employee turnover is a rising issue in Indonesia’s information and communication sector. PT XYZ reported a turnover rate of 17.2% in 2024. This study investigates the influence of job satisfaction and employee experience...