The Effect of Financial Characteristics, Misstatement and Audit Quality toward the Financial Performance in West Sumatera

Abstract

This paper is aimed at investigating the effect of financial characteristics misstatement and audit quality to the performance of local governments in improving community welfare. Sample of this study uses is the all the regional government of West Sumatera Province which consists of 1 (one) provincial government, 7 (seven) city governments, and 12 district governments which will be observed in years 2015 2017. The analysis showed that the independent variables misstatement and audit quality has no affect financial performance, while the total asset variables and capital expenditure have affected on financial performance.