Regional Financial Performance and Audit Opinion: Independence and Comparison among Archipelagic Regions in Indonesia

This study aims to determine the relationship between regional financial performance, audit opinion results, and the differences between the islands in Indonesia. The data used is in the form of audit opinion results and audited budget realization reports for 2020 from 225 district governments in Indonesia as samples to measure regional financial performance in the form of independence ratios, efficiency ratios, effectiveness ratios, and regional income and expenditure growth ratios. All data comes from the 2021 Semester I Examination Results Summary of the 2020 Fiscal Year Local Government Financial Reports published by the Audit Board of the Republic of Indonesia. Using the One Way ANOVA F-Test and the Chi-Square Pearson Test at a significance level of 5%, the results show a significant relationship between the independence ratio, the effectiveness ratio, and the ratio of regional revenue and expenditure growth to the results of the audit opinion. Another finding is that there are significant differences in the independence ratio, the effectiveness ratio, the ratio of expenditure growth, and the results of audit opinions between the Indonesian archipelago.