The Role of Village Facilitators in Increasing the Audit Quality of Village Funds in Indonesia


  • Ya’atulo Warae Faculty of Economics and Business, Universitas Sumatera Utara
  • Erlina Erlina Faculty of Economics and Business, Universitas Sumatera Utara
  • Dian Anita Nuswantara Faculty of Economics and Business, Universitas Negeri Surabaya
  • Parapat Gultom Faculty of Economics and Business, Universitas Sumatera Utara


Auditor Independence, Audit Risk, Utilization of Information Technology, Role of Village Facilitators and The Audit Quality of Village Funds


Purpose This study analyses and seeks empirical evidence about the factors influencing the audit quality of village funds: auditor independence, auditor risk, and information technology. Moreover, the moderating effect of the village facilitators on the dependent variable, i.e., how effectively or poorly the variables that are independent influence the dependent variable. Methodology The research population is internal auditors in district governments throughout North Sumatra Province. Data sources were obtained by distributing questionnaires via the Google form and processed using the Structural Equation Modeling (SEM) technique using the SmartPLS application. Finding The study results show that auditor independence and the utilization of information technology have a positive and significant effect on the audit quality of village funds. The audit risk variable has a negative and significant impact on the audit quality of village funds. Furthermore, the role of the village facilitators as a moderating variable strengthens the auditor's Independence with a positive and significant influence on the audit quality of village funds. The moderation findings between the auditor's risk and the village facilitators' function have a detrimental and negligible impact. The moderation results between the part of village facilitators strengthen information technology with a positive and negligible impact on the audit quality of village funds.Research Limitations The number of samples was only carried out in 25 districts in the North Sumatra region with as many as 170 respondents, so when data processing is carried out on the Smart-PLS application, the results of the bootstrapping tend to change even when the calculations are carried out the results are positive and significant. Still, the effects can be damaging and effective when the analyses are carried out for the next update. Therefore, to get consistent results in the future, it is better if the number of samples is 500 respondents. Furthermore, the results of this study were carried out only with the auditor's perception, not directly to the respondents on this external research variable.Practical Implication The Inspector should note from the Inspectorate in each regency that the assignment of auditors to villages must consider the level of Independence of village officials by not assigning auditors to audit in their village of origin and not having family ties in the village. This dramatically affects and disturbs the psychology of the auditor when examining audit evidence deemed not following the provisions. Therefore, auditor independence is a significant factor in maintaining the audit quality of village funds so that it has a high contribution to achieving the development and welfare of rural communities throughout Indonesia. The central and regional governments should make strict supervisory policies in managing village finances by providing an application that is easy for all parties to use to submit reports on indications of fraud occurring in each village, and the results of this application become reference material for auditors and law enforcement officials to carry out monitoring and field inspection.Originality/Value The novel aspect of this study is how the auditors' internal variables audit risk and auditor independence as well as external factors, such as village officials' use of technology and the role of assistants in the village as moderating variables, affect the quality of the village fund audit. Subsequently, by revealing fraud detection in the audit report, researchers included an additional measure of audit quality, (Wooten, 2003).




How to Cite

Ya’atulo Warae, Erlina Erlina, Dian Anita Nuswantara, & Parapat Gultom. (2024). The Role of Village Facilitators in Increasing the Audit Quality of Village Funds in Indonesia. Kurdish Studies, 12(1), 382–398. Retrieved from