The Urgency of General & Investigative Audits on Lembaga Perkreditan Desa
I Nyoman Darmayasa

Accounting Department
Bali State Polytechnic
Badung, Indonesia
nyomandarmayasa[at]pnb.ac.id

Abstract

This study aims to review Lembaga Perkreditan Desa (LPD) management policies due to the phenomenon of declining liquidity levels even leading to bankruptcy and lawsuits hit during and after the pandemic. This study reviews the Regional Regulation of Bali Province No. 3 of 2017, Bali Governor Regulation No. 44 of 2017, and the operational management policies and procedures of LPD. The results are divided into three conservatism principles based on LPD management. The first conservatism principle is the credit distribution system by accommodating a combination of Peer-to-Peer lending and three pillars that align with the value of Tri Hita Karana as outlined in the LPD lending policies and procedures. The second conservatism principle is related to health assessment and LPD risk rating assessment by optimizing the use of digitization decision support systems. The third conservatism principle relates to additional provisions governing general audit criteria and investigative audits by independent auditors regularly every year. The results of this study can be used as a reference to review the Regional Regulation of Bali Province No. 3 of 2017 and Bali Governor Regulation No. 44 of 2017 as well as policies and procedures related to the management of the LPD.

Keywords: General Audit- Investigative Audit- Lembaga Perkreditan Desa- Conservatism- Decision Support Systems

Topic: Auditing