Int. J. Public Sector Performance Management, Vol. 4, No. 2, 2018 169 Copyright © 2018 Inderscience Enterprises Ltd. Determinants of settlement audit recommendation of the audit board of the Republic of Indonesia Agung Nur Probohudono*, Rudy Hartanto and Rifky Pratama Putra Faculty of Economics and Business, Sebelas Maret University, Jl. Ir. Sutami No. 65a, Surakarta, Indonesia Email: mustdownnow@gmail.com Email: rudyhartanto05@gmail.com Email: putra.rifkypratama15@gmail.com *Corresponding author Abstract: This study aims to determine the factors that affect the settlement of the audit recommendations of the audit board of the Republic Indonesia (Badan Pemeriksa Keuangan /BPK RI). This analysis employed a multiple regression analysis 305 local governments as the sample. The result of research showed that local government type and age affected audit recommendation settlement level of BPK RI. The two variables showed positive effect on follow-up settlement resulting in the audit result of BPK RI. In addition, this study showed that the interaction between education background and local government nature, with local government type interaction affected positively. And then, there is a negative correlation result of interaction between education background and political party monitoring on the settlement of BPK RI audit recommendation. The implication of research is that the settlement of BPK RI audit recommendation is an important matter for the improvement of local government financial accountability. Keywords: settlement audit recommendation; local government; audit opinion, Indonesia. Reference to this paper should be made as follows: Probohudono, A.N., Hartanto, R. and Putra, R.P. (2018) ‘Determinants of settlement audit recommendation of the audit board of the Republic of Indonesia’, Int. J. Public Sector Performance Management, Vol. 4, No. 2, pp.169–189. Biographical notes: Agung Nur Probohudono is a lecturer at the Faculty of Economics and Business of the Sebelas Maret University, Surakarta, Indonesia. He has taught public sector audit, public sector accounting and public sector accounting systems. He is registered as a certified accountant (CA) in Indonesia. Currently, he is the Head of the Center for Public Transparency and Anticorruption Studies Institute for Research and Communities. The focus of his current research is corporate governance, financial reporting and public sector performance. Rudy Hartanto is a graduate of Master of Accounting from the Sebelas Maret University (UNS). Currently, he is a Research Assistant in the Financial Services Authority Indonesia. The focus of his current research is public sector accounting, financial accounting, auditing and sustainable finance.