PENGARUH PERTUMBUHAN EKONOMI, PENDAPATAN ASLI DAERAH, KOMPLEKSITAS, DAN BELANJA MODAL TERHADAP KELEMAHAN PENGENDALIAN INTERNAL

Abstract

This research is aimed to examine the influence of economic growth, Local own source revenue (PAD), local complexity and capital expenditure to the local government internal control weaknesses. The population is all 38 districts / cities governments in East Java Province in 2014-2016 periods so that the total population is 114 local governments. The sample collection technique has been done by using purposive sampling method. Based on the predetermined criteria, 105 local governments have been selected as samples. The data is the secondary data which is in the form of GDP data, the total number of sub-districts data, the summary of Semester Examination Results (IHPS) and the Report on Local Government Finances data from the Audit Board of the Republic of Indonesia East Java Province Representative. The analysis method has been conducted by using multiple regressions analysis and the 21st version of SPSS application tools (Statistical Product and Service Solutions). The result shows that economic growth and Local Own Source Revenue (PAD) give positive influence to the internal control weaknesses. Meanwhile, the local complexity and capital expenditure do not give any influence to the local government internal control weaknesses.
Keywords: Internal control weaknesses, economic growth, local own source revenue, local complexity, capital expenditure