Sebelas Maret International Conferences, The 2nd INCREDIBLE

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Audit Opinion on Local Government Financial Statement and Regional Economic Growth
Fitra Dharma

Building: Parallel Session 1
Room: A
Date: 2020-10-27 01:15 PM – 02:30 PM
Last modified: 2020-10-19


This study aims to examine whether there is the difference between regional economic growth in local government that obtained unqualified opinion for its Financial Statement and regional government that obtained modified audit opinion. The sample of study is district/city governments in Indonesia in 2011-2016.

The testing of all sample in 2011-2016 using Mann-Whitney shows that there is no positive difference between Unqualified opinion and Modified opinion on regional economic growth.  However, when the sample is tested in each year there is the tendency for differences in economic growth to get smaller between local government with Unqualified opinion and Modified opinion. Even though in 2016, the regional economic growth average after a year of obtaining unqualified opinion is higher compared to district/city governments that obtained modified audit opinion.