ABSTRACT

Today, in the era of globalization that is growing rapidly and the era of the industrialrevolution 4.0 that spreads in various sectors, local governments either directly orindirectly have an impact from. One of the policies that must be carried out so as notto get a negative impact is by increasing local government performance based on theapplication of technology in the field of accounting systems and internal supervision.Based on the evaluation of Government Agency Performance Accountability System(Ind: Sistem Akuntabilitas Kinerja Instansi Pemerintah, SAKIP), a budget of IDR. 392.37trillion has not been effectively utilized by local government. This can be interpretedthat the government performance is still not optimal because several programs maynot be on target. The financial accounting system and internal supervision thatalready exist and are in accordance with expectations are likely to produce optimalperformance, but without the Islamic working attitude by the parties concerned cancause fraud and unethical actions. If a system and supervision of an organization arevery good, but it is not balanced with an Islamic working attitude, the performancewill not be useful and tends to harm others or even themselves.