ANALYSIS OF THE EFFECT OF ACCOUNTING POLICY AND AUDIT OPINION TOWARD SOVEREIGN ASSET AND LIABILITIES MANAGEMENT (SALM) REPORTING WITH MODERATION OF GLOBAL RISK

Abstract

Objective: The aim of this study is to the impact of Accounting Policy and Audit Opinion on the SALM (Sovereign Asset And Liabilities Management) reporting. And also to the role of Global Risk as a moderating variable in the effect of Accounting Policy and Audit Opinion on the SALM reporting.   Theoretical Framework: Theoretical Framework: In this topic, the institutional concepts and theories underlying the research are presented so as to provide a strong basis for understanding the context of the influence of accounting policy and audit opinion on SALM reporting. Risk theory is also added as a moderator in this study.   Method: The study uses a quantitative approach by distributing questionnaires to 133 respondents in middle-up management positions in Bank Indonesia, Indonesian Accountants Association, Ministry of Finance, Financial Audit Agency, Indonesian Public Accountants Association. Multiple linear regression analysis was used with the Smart PLS statistical tool.   Results and Discussion: This research shows that result: (i) Accounting Policy has not significant positive effect on SALM Consolidated Reporting; (ii) Audit opinion has a positive and significant effect on the SALM Consolidated Reporting; (iii) The Global risk does not strengthen the influence of accounting policies on the SALM Consolidated Reporting; (iv) The Global risk strengthens the influence of the Audit opinion on the SALM Consolidated Reporting.   Research Implications: For decision makers in the public sector, especially the ministry of finance and/or Bank Indonesia, it is hoped that it will provide benefits in efforts to strengthen and/or prepare assessments and policies related to SALM.   Originality/Value: This study contributes to the Indonesian Accountants Association (IAI) as the Financial Accounting Standards Body or Financial Accounting Standards Board in Indonesia, it is hoped that it can provide a reference in improving financial accounting standards for both the government and Bank Indonesia.