The Effect of BPK Audit Opinions on the Financial Performance of Local Goverments in Central Java Province (2022-2024)

Devi Liana; Marlina br Sihombing; Syafira Cahya Ramadhani; Windi Ayunanda

doi:10.55227/ijerfa.v4i2.444

Authors

Devi Liana Accounting, Social Science, Pembangunan Panca Budi University, Indonesia
Marlina br Sihombing Accounting, Social Science, Pembangunan Panca Budi University, Indonesia
Syafira Cahya Ramadhani Accounting, Social Science, Pembangunan Panca Budi University, Indonesia
Windi Ayunanda Accounting, Social Science, Pembangunan Panca Budi University, Indonesia

DOI:

https://doi.org/10.55227/ijerfa.v4i2.444

Keywords:

audit opinion, BPK, financial performance, local govenment, Central Java

Abstract

This research investigates the relationship between audit opinions issued by the Supreme Audit Agency of Indonesia (BPK) and the financial performance of local governments in Central Java Province over the 2022–2024 period. Audit opinions function as an independent evaluation of the credibility and compliance of local government financial reports and are often associated with public sector accountability. This study adopts a quantitative approach using a causal-associative research design. Secondary data were collected from BPK audit reports (LHP) and audited local government financial statements (LKPD). The sample comprises regency and city governments in Central Java Province selected through purposive sampling based on data availability. The analysis was conducted using descriptive statistical techniques and classical assumption testing, followed by simple linear regression analysis. The results of this study are expected to clarify whether audit opinions play a meaningful role in explaining variations in local government financial performance and to contribute to empirical discussions on audit outcomes and public financial management within the public sector.

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