This study aims to analyze the effect of audit findings and audit recommendations follow-up on the quality of financial reports and the quality of public services in the context of applying accrual accounting systems to local government in Indonesia. This study also examines whether the quality of the financial report affects the quality of public services.,This study employed cross-sectional regression using data from 1,437 observations from 491 districts/cities for 2014–2016. The data illustrates the conditions prior to the adoption of the accrual accounting system (2014), the initial year of application/transition period (2015) and the second year of the expected accrual accounting system (2016).,The results of the study indicate that, in general, the quality of financial reports affects the quality of public services. Regarding the implementation of audits in the public sector, it is also found that audit findings have a negative impact on the quality of financial report and the quality of public services, while audit recommendations follow-up plays a positive role in improving the quality of financial report and the quality of public services.,The implication of the results of this study is closely related to the efforts to realize the ultimate goal of the recent government reforms. In order to increase the quality of public services in the era of higher report requirements through an accrual accounting system, the government should focus on the quality of financial reports, audit findings and the audit recommendations follow-up.,This study provides new insight on the link between the public sector auditing and the quality of accounting in accrual implementation context and the quality of public services.

中文翻译：

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审计结果和审计建议跟进对印度尼西亚财务报告和公共服务质量的影响

这项研究旨在分析在将应计会计系统应用于印度尼西亚地方政府的背景下，审计结果和审计建议后续措施对财务报告质量和公共服务质量的影响。本研究还研究了财务报告的质量是否影响公共服务的质量。本研究使用横截面回归，使用了491个县/市2014-2016年的1437项观察数据。数据说明了采用权责发生制（2014），申请/过渡期的第一年（2015）和预期权责发生制的第二年（2016）的条件。研究结果表明通常，财务报告的质量会影响公共服务的质量。关于在公共部门执行审计，还发现审计结果对财务报告的质量和公共服务的质量有负面影响，而审计建议的后续行动在提高财务质量方面起积极作用报告和公共服务质量。这项研究结果的含义与实现近期政府改革的最终目标的努力紧密相关。为了通过权责发生制会计系统在报告要求更高的时代提高公共服务的质量，政府应重点关注财务报告，审计结果和审计建议后续措施的质量。