The Effect of The Implementation E-Budgeting, Audit Board Opinion and Internal Control System on Corruption in Indonesia
Authors: Marselina  , Yuliandari Puspita , Sujadmiko Bayu , Kusumawardani Niken 
Published: December 2024

Objective: The objective of this study is to investigate [insert specific research topic here], with the aim of [briefly Objective: This research aims is to examine the influence of E-Budgeting, Financial Audit Agency (FAA) Opinion on Financial Reports and the Internal Control System on the Corruption Perception Index in the regions of Indonesia. It is hoped that the results of this research can provide any contribution in the form of policies for the management of regional government systems, so the government can prevent or reduce the case of corruption.

Theoretical Framework: Corruption can be happen because it is influenced by weak governance, lack of accountability, transparency, and an ineffective internal control system. The solution that can be done to this case is we should increase transparency through e-Budgeting and strengthen the internal control system. This solution is expected to reduce the occurrence of corruption.

Method: The analytical method that was used in this research is the multiple regression statistical method. Before being analyzed, firstly the data was tested using the classic assumption test. The regression equation is used to test the proposed hypothesis. The samples/data used in the research are 1) the opinion report data of regional financial originating from various institutions, such as Financial Audit Agency (FAA), 2) the index data of integrity and corruption prevention originating from the Corruption Eradication Commission (KPK), 3) the internal control system data from the Supervisory Agency Finance and Development (FAAP), and 4) the data of Civil Servants that involved of corruption practices in Level I Regions (Provinces) and Level II Regions (districts/cities) in the year 2017 and 2018 that is came from the State Civil Service Agency.

Results and Discussion: Based on the data analysis that has been carried out, this research finds that e-Budgeting, the opinion of Financial Audit Agency (FAA), and the internal control system can influence the level of corruption in local government. By implementing e-Budgeting, the level of corruption can be reduced, although there are still gaps in corrupt practices. In the implementation of the Internal Control System, the developments and weaknesses in its independence are still visible. In the opinion of Financial Audit Agency (FAA), the process still appears to be insignificant in reducing corruption, so we need more effective assessment needs to be emphasized. Capital expenditure and regional income can also influence the level of corruption, that's why we should have the stricter supervision.

Research Implications: The findings in this research can be used as a basis for policy making in order to improve government governance in Indonesia. The implementing solutions such as e-Budgeting and strengthening internal control systems is expected to reduce the occurrence of corruption and related the states' losses.

Originality/Value: This research provides a new contribution to the relationship between the implementation of e-Budgeting, the opinion of Financial Audit Agency (FAA), and the internal control system related to the level of corruption in local government. Measuring the level of corruption through variables such as local government integrity and the number of employees that is involved in corruption cases provides a comprehensive perspective in assessing the impact of proposed solutions.