Add to ORKGAbstract Budgets in local governments are financial plans that serve as operational and financial guidelines for local governments and financial reports are a medium of accountability for the budgets that have been implemented by local governments (Abdullah, 2020). Therefore, the local government financial report (LKPD) will show the budget and its realization, as well as the financial status before and after the budget is implemented (Abdullah, 2020). Between the two documents, there is a process that allows financial reports not only to report on budget execution, but also to provide political “tools” and acknowledgment of bias in the budgeting process estimated by local government external auditors. Therefore, agency problems are found i...