Dr. Dwi Martani

Universitas Indonesia – Fakultas Ekonomi dan Bisnis – Ilmu Akuntansi

Dyah Setyaningrum

Lindawati Gani

Dwi Martani

Universitas Indonesia

Cris Kuntadi

Pusdiklat BPK – RI


The purpose of this is to analyze the effect of auditor quality and legislative oversight on the follow-up of audit recommendations, and also examining the indirect effect between the auditor quality and legislative oversight on the audit findings through the follow-up of audit recommendations as an intervening variable. Sample of this study is local governments’ financial statement in Indonesia from 2010-2012. Using principle component analysis methods, there are four components extracted that form auditor quality which is experience, training, motivation, and education. The empirical test result shows that there is a direct effect between the auditor qualityand legislative oversight on the follow-up of audit recommendations, as well as indirect effect on audit findings. High quality auditor is able to produce high quality recommendations that can be easily followed by the audited entity. Strong legislative oversight encourages closer monitoring over the local government financial management so that local governments more committed to following up on the audit recommendation. The higherthe audit recommendations are acted upon, the better the quality of local government financial statements asshown by the decrease in audit findings.

Keywords: audit findings, auditor quality, follow-up, legislative oversight.

Dipresentasikan pada Simposium Nasional Akuntansi (SNA) XVII “Peranan Akuntan dalam Mewujudkan Pembangunan Berkelanjutan Melalui Pelaporan Terintegrasi”, Nusa Tenggara Barat, 24 – 27 September 2014, penyelenggara: Fakultas Ekonomi Universitas Mataram dan IAI-KAPd. Pengaruh Kualitas Auditor…