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31INTERNATIONAL JOURNAL OF THEORETICAL AND PRACTICAL RESEARCH
DOI 10.5281/zenodo. 5731674
International journal of theoretical and practical research
Scientific Journal
Year: 2021 Issue: 1 Volume: 1 Published: 01.11.2021
http://alferganus.uz
Citation:
Teddy, O., Anugerah, A. P. (2021). Analysis of internal control system on financial statements government opinion. SJ International journal of theoretical and practical research, 1 (1), 87-95.
Doi: https://dx.doi.org/10.5281/zenodo.5731654
DOI 10.5281/zenodo. 57316 54
QR-Article
Teddy Oswari
PhD, Faculty of Economic, Universitas Gunadarma, Indonesia
Anugerah Adhi Prasetyo
PhD, Faculty of Economic Universitas Gunadarma Indonesia
ANALYSIS OF INTERNAL CONTROL SYSTEM ON FINANCIAL STATEMENTS GOVERNMENT OPINION
Abstract: Accountability, transparency and reliability of financial reporting is key in reaching Opinion WTP. implementation of internal control in government agencies, in the National Medium Term Development Plan (RPJMN) 2010-2020 SPIP implementation be used as one indicator of mainstreaming good governance, which must be implemented by each agency and became an operational basis for the entire implementation of development, an effective system of internal control in each government agency used as a priority activity area of the state apparatus (in RPJMN 2010-2020) conducted by BPKP. This study is qualitative research. This study illustrates what is causing the government gets opinions Fair With Exception (WDP). Results of this study are expected to provide input to the report's authors to be able to present the audit report in accordance with the criteria set by the CPC. While SPIP is a system of internal control that is held in the whole central and local government. Elements of Internal Control System (SPI) in PP-SPIP refers SPI elements that have been practiced in government in various countries, which include five elements 1) control environment (8 sub-elements), 2) risk assessment (2 sub elements), 3) control activities (11 sub-elements), 4) information and communication (2 (3 sub elements).
Keywords: control, system, financial, opinion.
Тедди Освари
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Доктор философии, экономический факультет, Университет
Гунадарма, Индонезия
Анугерах Адхи Прасетйо
Доктор философии, экономический факультет, Университет
Гунадарма, Индонезия
АНАЛИЗ СИСТЕМЫ ВНУТРЕННЕГО КОНТРОЛЯ ФИНАНСОВОЙ ОТЧЕТНОСТИ МНЕНИЕ ПРАВИТЕЛЬСТВА
Аннотация: Подотчетность, прозрачность и надежность финансовой отчетности являются ключевыми в достижении мнения WTP. Внедрение внутреннего контроля в государственных учреждениях, в Национальном среднесрочном плане развития (RPJMN) на 2010-2020 гг. Внедрение SPIP должно использоваться в качестве одного из показателей внедрения эффективного управления, которое должно быть внедрено каждым агентством и стало оперативной основой для всего процесса разработки, эффективная система внутреннего контроля в каждом государственном учреждении, используемая в качестве приоритетной области деятельности государственного аппарата (в RPJMN 2010-2020 гг.), проводимой НСРПР. Это исследование является качественным исследованием. Это исследование иллюстрирует, что является причиной того, что правительство получает справедливые мнения с исключением (WDP). Ожидается, что результаты этого исследования послужат вкладом для авторов отчета, чтобы они могли представить аудиторский отчет в соответствии с критериями, установленными CPC. В то время как SPIP - это система внутреннего контроля, которая проводится во всех центральных и местных органах власти. Элементы системы внутреннего контроля (SPI) в PP-SPIP относятся к элементам SPI, которые практиковались в правительстве в разных странах, которые включают пять элементов: 1) среда контроля (8 подэлементов), 2) оценка рисков (2 подэлемента), 3) контрольная деятельность (11 подэлементов), 4) информация и связь (2 (3 подэлемента).
Ключевые слова: контроль, система, финансы, мнение.
Introduction
The creation of financial performance accountability is an absolute thing manifested by a regional leader. It is implicit in the Act (Act) No. 17 of 2003 on State Finance, Law number 01 of 2004 on State Treasury, and Law number 15 of 2004 on the Audit of the Management and Financial Responsibility State. Article 31 paragraph (1) Act No. 17 of 2003 states the Governor / Regent / Mayor submitted a draft local regulation (regulations) on the accountability of the budget to Parliament in the form of financial statements, audited by the Supreme Audit Agency (BPK) not later than 6 (six) months after the fiscal year ends. 'm Article 31 paragraph (2) of
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Law No. 17 of 2003 states the financial statements include budget realization report, Balance Sheet, Cash Flow Statement and Notes to the Financial Statements, accompanied by the local government financial reports. One concrete efforts to achieve transparency and accountability in public finance management is the submission of the financial statements that meet the government's principles on time which is based on the government ac-counting standards. Namely Government Regulation (PP) No. 24 of 2005 on Government Accounting Standards.
Realize accountability and transparency in governance is not as easy back your hand, required an sub-elements), and 5) monitoring of internal control intensive effort undertaken on an ongoing basis. In 2008 the Government issued Government Regulation No. 60, 2008 concerning the Government Internal Control System (SPIP). Designing PP was initiated by the Finance and Development Supervisory Agency (BPK) as the implementation of Article 58 paragraph (2) of Law No. 1 of 2004 on State Trea-sury. SPIP aims to provide reasonable assurance for achieving effectiveness and efficiency in achieving the objectives of the governmental activities, the reliability of financial reporting, safeguarding of state assets, and compliance with laws and regulations. With the PP-SPIP then every minister / head of the institution, governors, regents / mayors shall exercise control over the implementation of the activities of government based on the SPIP as stated in Article 2 paragraph (1), and also responsible for the effectiveness of internal control systems in the each. Chairman of the CPC at the time, Anwar Nasution, a positive response to the issuance of PP-SPIP by saying that the PP has been long-awaited CPC. One reason why the CPC many times to give an opinion or a disclaimer does not provide an opinion on the financial statements of the central government (Audited) partly because of the inadequacy and lack SPIP institutionalized.
Internal Control System (SPI) is an implementation of the monitoring phase contained in the budget cycle (budget cycle) consisting of:
1) Stage budgeting,
2) Budget approval stage,
3) Stage of implementation of the budget,
4). Phase pegawasan budget execution,
5) Phase ratification budget calculations.
Under Law No. 1 of 2004 on State Treasury, President as head of government was given the mandate to organize and conduct the internal control system within the government as a whole in order to improve performance, transparency, and accountability in financial management. On the basis of these rules, on August 28, 2008 the government issued Government Regulation No. 60 of 2008 concerning the
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Government Internal Control System (SPIP). PP No. 60/2008 further provides direction on how to implement the concept and the SPIP.
This paper aims to determine the extent of influence of the reliability of the Government Internal Control System (SPIP) has been implemented, the relationship between subjective statements of SPIP with external control apparatus, and the factors that influence the increase or decrease in the quality and presentation of financial statements through a subjective statement of CPC.
Research Method
This study is qualitative research. This study illus-trates what is causing the government gets opinions Fair with Exception (WDP). Results of this study are expected to provide input to the report's authors to be able to present the audit report in accordance with the criteria set by the CPC.
Secondary data used were obtained from a third party such as the Internet, newspapers, and articles. Analysis of documents or content analysis is a method that includes the collection of data and information through testing records and documents. Secondary data were obtained from the Supreme Audit Agency in the form of Statements Audit Reports Government finances.
Discussion
Government Regulation No. 60 of 2008 has been a standard or reference in implementing governance and financial accountability, the implementation of the budget. In Article 56 paragraph (4) of Law number 01 of 2004, declared Local Government Finance Report (Government) should be prepared based on the system of internal control (SPI). The role of SPI is to improve performance, transparency, and accountability in the financial management of the State. President as head of the government regulating and organizing the internal control system within the government as a whole. The purpose and objectives of the government set PP No. 60 of 2008 on the system of internal control government (SPIP) is to improve the quality of financial reporting transparency and accountability of local government as a supporter of the financial state-ments of the Supreme Audit Agency (BPK). Article 15 paragraph (1) of Law Number 15 of 2004 states the examiner (CPC) prepared a report on the results of the examination (LHP) after the examination is completed and Article 16 paragraph (1) of Law Number 15 of 2004 states that the examination report on the government's financial statements containing opinions. Opinion is a professional statement to the conclusion the results, the level of fairness of the information presented in the financial statements of local governments.
BPK audit results in the form of a report of in-vestigation (LHP) and giving opinions on the fairness of presentation of financial statements. In conclusion the
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results: a) Unqualified (WTP), b) Naturally, With Exception (WDP), c) Not Fair (TW) d. disclaimer. PP No. 60 of 2008 concerning the Government Internal Control System, SPI is an integral process in actions and activities performed on a continuous basis by the management and all employees to provide reasonable assurance on the achievement of organizational goals through effective and efficient, the reliability of financial reporting, security state assets, and compliance with laws and regulations. While the Government Internal Control System (SPIP) is the Internal Control System as a whole held at the central and local governments.
Government Regulation (PP) No. 8 of 2006 on financial reporting and the performance of government agencies, SPI is a process that is influenced by management designed to provide sufficient confidence in achieving effectiveness, efficiency, compliance with laws and regulations, and the reliability of the presentation Government's financial statements. The relationship between subjective statements of SPIP with external control apparatus, CPC as a functional unit extern officers have the authority to conduct an audit to account for the reliability of the financial management responsibilities of local government, based on the Internal Control System has been implemented by the Government of the head region. In Article 2, paragraph (3) Regulation No. 60 of 2008, SPIP goal is to provide reasonable assurance for achieving effectiveness and efficiency in achieving the objectives of the state government, the reliability of financial reporting, safeguarding of state assets, and compliance with laws and regulations. A SPIP said to be good if it meets the five elements of Internal Control System (Sudjono and Hoesada, 2009) which include:
1. Environmental control of the government agencies that influence the effectiveness of in-ternal control.
2. Risk assessment on the possibility of events that threaten the achievement of the goals and objectives of government agencies.
3. Control activities to address the risks and the establishment and implementation of policies and procedures to ensure that the measures address the risks have been effectively implemented.
4. Information and communication. Information is data that has been processed can be used for decision making in the course of the duties and functions of government agencies. Communi-cation is the process of delivering a message or information to use a particular symbol or emblem either directly or indirectly, to obtain feedback.
5. Monitoring of internal control over the perfor-mance of SPI and processes that provide con-fidence that the findings of audits and other evaluations followed up immediately.
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Internal Control System (SPI) in the reporting entity (local government) is a factor that determines the reliability of the financial statements of the entity. Therefore, in giving an opinion on the fairness of financial statements diauditnya, auditors confidence in the effectiveness of the controls laid. Similarly, the BPK auditors in carrying out their assignment should be supported by an understanding of the internal control of a local government for planning audit (Mulyadi, 2002). Regulation of the Minister of Home Affairs No. 4 of 2008 on guidelines for the implementation of the review of the financial statements of governments, SPI is a process that is influenced by management designed to provide sufficient confidence in achieving effective-ness, efficiency, compliance with laws and regulations, and the reliability of the presentation financial statements.
The auditor's understanding of internal control are used for
1) The possibility of whether or not the audit conducted,
2) Potential material misstatements that may occur,
3) Risk detection,
4) The design of substantive tests.
Assessment of the SPI is useful to identify the management procedures that have a regional financial risk for the occurrence of a material misstatement in the financial statements. Assessment of the SPI made by parties who have the authority as a unit supervisor intern and extern auditor (inspector or BPKP) and auditor (CPC).
Procedures for assessing the SPI made through the following process:
a) Understanding financial management systems and procedures covering areas: Systems and Procedures Cash Receipts; Cash Expenditure Systems and Procedures; Accounting Systems and Procedures Unit; Accounting Systems and Procedures Regional Financial Management Officer (PPKD); Systems and Procedures Preparation of Financial Statements.
b) Observation and/or interviews with stakeholders in each procedure. This activity is to identify the risks that may arise in each sub-process and the presence of existing control system in order to anticipate the risks concerned.
c) Do an analysis of the risks that have been identified to a conclusion about the possibility of a material misstatement in the financial statements. d) Do an analysis of the risks that have been identified to a conclusion about the direction of the implementation of SPI testing.
Effectiveness of internal control systems of government (SPIP) is the responsibility of the leadership of the Institute / Governor / Regent / Mayor. Includes the following activities:
a) Internal control over local governance, duties and functions of the agency, including financial accountability. Committed by the internal watchdog of government
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(APIP) through auidt assignment, review, evaluation, monitoring, and other monitoring activities.
b) SPI implementation of government guidance. Under the terms of the legislation, through the preparation of technical guidelines SPIP implementation, dissemination, education and training, coaching and consulting, and increase the competence of auditors. The relationship between subjective statements of SPIP with external control apparatus, CPC, the effectiveness of Internal Control System is determined by the commitment of Government of each head of the institution / Governor / Regent / Mayor in complying with laws and regulations of management of local finance, the conclusion that the results of the examination conducted by CPC, can be a subjective statement includes a. Unqualified (WTP), b. Naturally, With Exception (WDP). c. Not Fair (TW) and d. dicleamer.
Conclusion
With the issuance of Government Regulation No. 60 of 2008, each government agency is obliged to apply the SPIP in its activities. Application SPIP properly will improve the image of government being able to achieve its goals effectively and efficiently, featuring reliable financial reporting, and prevent the state from loss because it has the human resources to obey the rules. There are five elements of leadership SPIP requiring government agencies to have certain competencies and perform certain tasks. For that, it's time to prepare the entire leadership of government agencies and organizations that led him to apply SPIP.
The presence of SPIP is a step forward considering that there is no minimum guideline for government agencies at the time of going to design internal control. Internal control system (SPI) in PP- SPIP interpreted as an integral process in actions and activities performed on a continuous basis by the management and all employees to provide reasonable assurance on the achievement of organizational goals through four pillars, namely
1) effectiveness and efficiency of achievement of objectives,
2) the reliability of financial reporting,
3) security of state assets,
4) compliance with laws and regulations.
While SPIP is a system of internal control that is held in the whole central and local government. Elements of Internal Control System (SPI) in PP-SPIP refers SPI elements that have been practiced in government in various countries, which include five elements:
1) control environment (8 sub-elements),
2) risk assessment (2 sub elements),
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3) control activities (11 sub-elements),
4) information and communication (2 sub-elements),
5) monitoring of internal control (3 sub elements).
For the realization of a powerful and effective SPIP, the five elements SPIP should be applied in an integrated and integral part of the activities of government agencies. The application is intended to be integrated all the elements are applied, starting from the development of the control environment elements (8 sub-elements), to the elements of internal control monitoring (3 sub elements).
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