SELF INTEREST IN THE FINDINGS OF REPEATED AUDITS ON LOCAL GOVERNMENT (A CASE STUDY IN INSPECTORATE BUREAU OF CENTRAL LOMBOK)

Abstract

This research discusses why financial reports of village’s authorities failed to improve despite the recommendations were available based on the findings in the auditing process, resulting in the finding of repeated audits. This was reflected on the contract between the government as the principal of the area and the village’s authorities as the agent, where the contract might enablecorruptive scandals committed by either the government or the authorities due to their unrighteous ambitions. The purpose of this research was to discoverthe information related toseveral factors which causethe occurrence of repeated audits among the village’s authorities and the possible solutions that might be applied to solve the problem. This research employed qualitative method with case research approach and multiple-case (holistic) design. The results of this research showed that repeated audits occurred because of the selfinterestbehavior in the form of moral hazard, and the dual-role of the village’s authorities in the implementation of the APBDes. The findings of this research are expected to help the village’s authorities in improving the managerial performances in auditing according to the recommendations of audits. The results of this research can also be implemented in Central Lombok Regency in form of Regent’ Regulationsfor a better restoration in the bureaucracy