Performance Audit in Supreme Audit Institution of Indonesia: A Capacity Building Analysis in the Implementation of the Audit

The paper critically analyse the capacity building process that aims to enable better performance audit in BPK, the Supreme Audit Institution of Indonesia. The paper will provide different concept in auditing. It highlights the difference between performance audit and two other types of auditing namely, financial audit and compliance audit. To better understand performance audit in BPK, this paper will analyse constraints and challenges encountered by BPK. In addition to describing policies made by the management in BPK, the paper also recommends ideal capacities needed for SAI to further develop performance audit. This consists of management involvement, external relation, and institutional issues. The paper also reveals how US-GAO and ANAO play a crucial part in influencing the implementation of performance audit in BPK. Lastly, the paper will also discuss the underlying conceptual framework of performance audit capacity building and its potential unintended consequences.