RIS ID

84579

Publication Details

Silaen, P. (2013). Performance audit in government sector of an emerging market: a case of Indonesia. 25th Asian - Pacific Conference on International Accounting Issues (pp. 1-15).

Abstract

In 1995 the OECD (Organisations for Economic Co-operation and Development) countries had a symposium in Paris on 6-7 June 1995 and came up with the 5 types of PA (Performance Audit) practiced by OECD countries. These 5 types of PA has different unit of analysis, different mode of review, different scope of evaluation, and different focus of effort. Indonesia as one of country of emerging market is starting to move to new public management and progress the performance audit in public sector through its government regulation number 60, in 2008. The government unit that is assigned to coach the implementation of performance audit in government sector in Indonesia is the Finance and Development Supervisory Agency (BPKP). The purpose of this paper is to investigate how the performance audit (PA) is implemented in the government sector in Indonesia. The paper uses a case study of how the Finance and Development Supervisory Agency (BPKP) by analysing the Performance Audit Handbook used by the government auditor at the Finance and Development Supervisory Agency (BPKP) and compare it to the elements of PA practiced by OECD countries. The study finds that there are some components of performance audit practiced in OECD countries were used by the Finance and Development Supervisory Agency (BPKP) in Indonesia, while the financial aspect is still used but limited to measure the economy and efficiencies. With a limitation to a single case of the BPKP in Indonesia, this study has its originality contribution to the literature by examining a unique case of a government sector, and describes how the performance audit was used to enhance the accountability of public sector in a country of emerging market.

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