Universal Journal of Accounting and Finance 10(1): 211-218, 2022 http://www.hrpub.org
DOI: 10.13189/ujaf.2022.100122
The Role of Law Enforcement on Moderating the
Relationship between Government Size, Fiscal
Decentralization, Audit Finding and Corruption
Khoirul Aswar
1,*
, Ermawati
1
, Jumansyah
2
, Mahendro Sumardjo
1
, Anita Nopiyanti
1
1
Department of Accountancy, Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta, Indonesia
2
Department of Accountancy, Faculty of Economics and Business, Universitas Al-Azhar, Indonesia
Received October 6, 2021; Revised November 19, 2021; Accepted December 13, 2021
Cite This Paper in the following Citation Styles
(a): [1] Khoirul Aswar, Ermawati, Jumansyah, Mahendro Sumardjo, Anita Nopiyanti , "The Role of Law Enforcement
on Moderating the Relationship between Government Size, Fiscal Decentralization, Audit Finding and Corruption,"
Universal Journal of Accounting and Finance, Vol. 10, No. 1, pp. 211-218, 2022. DOI: 10.13189/ujaf.2022.100122.
(b): Khoirul Aswar, Ermawati, Jumansyah, Mahendro Sumardjo, Anita Nopiyanti (2022). The Role of Law Enforcement
on Moderating the Relationship between Government Size, Fiscal Decentralization, Audit Finding and Corruption.
Universal Journal of Accounting and Finance, 10(1), 211-218. DOI: 10.13189/ujaf.2022.100122.
Copyright©2022 by authors, all rights reserved. Authors agree that this article remains permanently open access under
the terms of the Creative Commons Attribution License 4.0 International License
Abstract This study is based on Indonesia's high
levels of corruption, as evidenced by the Corruption
Perception Index's low level (CPI). In Indonesia, the bulk
of corruption cases involve local government entities. The
objective of this study is to empirically examine the
factors that contribute to high levels of corruption in local
governments of district or city in Indonesia and the role of
enforcement in that influence. This study applied a
purposive sampling method to obtain a sample consisting
of 66 district governments and 15 municipal governments
in Indonesia in 2019. The data were analyzed by utilizing
multiple linear regression techniques using Statistical
Package for the Social Sciences (SPSS) version 25. The
results of the analysis revealed that fiscal decentralization,
government size, and audit findings have a significant
positive with the level of corruption and law enforcement
significantly moderates such relationship. This research
contributes to auditing practices, government
administration, law enforcement, and corruption control
initiatives in the local government of Indonesia. Local
government is also expected to be able to involve the role
of the community to help oversee the running of a
government which is free from corruption practices.
Supervision also needs to be done by law enforcement
officials, especially those dealing with corruption cases.
Law enforcement officers are expected to be able to
supervise and crack down on perpetrators of corrupt
practices.
Keywords Corruption, Law Enforcement, Fiscal
Decentralization, Audit Findings
1. Introduction
Since the end of the New Order era, the Government of
Indonesia has made improvements in the handling and
eradication of criminal acts of corruption in Indonesia.
Since the late 1990s, when structural changes caused
economic and political crises in Indonesia, the
government has been working hard to eliminate
corruption by reforming laws, decentralization, and rule of
law enforcement. The Indonesian people were encouraged
to become more democratic, decentralized, and
deregulated as a result of this incident [1]. One of the
improvements made by the Indonesian government is to
publish Law No. 31 of 1999 concerning Eradication of
Corruption Crimes. Furthermore, Law No 20 of 2001 is
one form of the serious efforts of the government after the
reforms to prevent and act against perpetrators of corrupt
practices. As a supporter in implementing the law, the
government appointed 3 law enforcement agencies to
handle and act on cases of corruption in Indonesia. The