Evaluation of Internal Control over Financial Reporting (ICoFR) Effectiveness Based on Symbolic Carriers within the Institutional Logics Framework in the Government Assistance Program of Ministry X

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Abstract

Audit findings on internal control over government assistance expenditures at Ministry X revealed material weaknesses, particularly incomplete Accountability Reports (LPJ), inconsistent understanding of procedures, and disparities in practices across work units. This situation indicates that the effectiveness of Internal Control over Financial Reporting (ICoFR) is influenced not only by technical aspects but also by institutional dimensions. This study aims to identify symbolic carrier factors affecting ICoFR effectiveness, addressing gaps in previous studies that focused primarily on implementation mechanisms. A qualitative approach was employed using thematic analysis, constant comparison, and triangulation across three respondent groups: implementing team, evaluation team, and review team. The study identified four main symbolic carriers: (1) formal regulations (PMK 17/PMK.09/2019) as an institutional script, (2) integrity, (3) accountability, and (4) transparency. These factors shape daily work practices, enhancing compliance, consistency, and openness, thereby strengthening ICoFR effectiveness and the quality of government financial reporting.