Internal control in village government: the case of Indonesia's village government
Internal control in village government: the case of Indonesia's village government

Summary/Abstract: Previous studies have documented the importance of internal control for an organisation. However, they failed to give attention to the village government, the lowest tier government in Indonesia. This study aims to develop an internal control concept into several factors and to examine any difference in internal control between timely or non-timely accountability reports and village-based tourism or non-village-based tourism. Using fiftythree village governments in Pariaman city, we employed three-stage analyses: explanatory factor analysis (EFA), confirmatory factor analysis (CFA), and univariate analysis. SPSS and smart-pls are used to conduct the above analysis. The EFA result shows that there are three factors created: environment, communication, control, activity (ACCA), management style, risk control effectiveness (MSRCE), and change management and monitoring (CMM). In addition, the CFA result also confirms these three factors with a reduced number of observed variables for MSRCE and CMM. Univariate analysis shows that only one variable from each factor differs between timely and non-timely accountability reports. This study has practical and theoretical implications, and they are discussed in detail in this paper.

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