Dr.Oyong Lisa.,SE,MM,CMA,Ak,CA,CIBA. INTERNATIONAL SEMINAR “INTERNATIONALIZATION OF HIGHER EDUCATION IN ASEAN COMMUNITY” Dr.Oyong Lisa.,SE,MM,CMA,Ak,CA,CIBA. Widya Gama College Economic Lumajang-Indonesia

ASIA-PASIVIC MANAGEMENT ACCOUNTING JURNAL (APMAA) International Firm characteristic, demand for external auditing service and financial performance: an empirical study on cooperative enterprises in East Java, Indonesia ASIA-PASIVIC MANAGEMENT ACCOUNTING JURNAL (APMAA) International Http;//arionline.edu.my/ojs/

IMPLEMENTATION OF MANAGEMENT ZAKAT AS A LOCAL REVENUE Journal of Asian Scientific Research http://www.aessweb.com/journals/5003

Introduction The cooperative is a business entity kinship. Results of research conducted by Chow (1982) Results research Sumanto (2003), This study takes the research area by selecting a population of cooperatives in Indonesia, taking the sampling in East Java because of the number of cooperatives in East Java is pretty much as much as 28.774 Cooperative of cooperatives in Indonesia total 188.181 cooperative, besides the size of cooperatives in East Java, many Asset are large enough with a Volume of business of Rp. 23.836.095.70, so, enough can represent for a study.

Formulation Problems How is the influence of the members to request external audit? How is the influence scale cooperative to request external audit? How is the influence total liabilities to request external audit? How is the influence of the members to financial performance cooperative? How is the influence scale cooperative to financial performance cooperative? How is the influence total liabilities to financial performance cooperative? How is the influence request external audit to the financial performance cooperative?

Financial Performance Cooperatives Review Literature Financial performance is the result of work that is a person or a group of people in an organization in order to achieve the objectives of the organization within a specific time period (Suntoro, 1999). Financial Performance Cooperatives Request an audit is an examination of financial statements by the external audit services (public accounting) to ensure that financial statements can be accounted for, not the internal audit or that is usually performed by a Supervisory Agency the cooperative itself. Request the Services an External Audit

Members of the Cooperative are persons or legal entity of cooperatives which have the same economic interests as the owner and the user of the services of the cooperative itself, participate actively to develop Cooperative efforts and other terms specified in the articles of the cooperative and are listed in members, according to ACT the Republic No. 25 of 2005 of cooperatives. Member Cooperative The scale is small large size cooperatives of cooperatives based on Assets owned by cooperatives (Jonah, 1992). Scale Cooperative Total liability is the obligation or debt that must be paid by the institution of cooperative good short-term liabilities and long-term liabilities. Total Liability

Hypothesis H1 : Members significant influence to request External Audit H2 : Scale cooperative significant influence to request External Audit H3 : Total liabilities significant influence to request External Audit H4 : Members significant influence to financial performance cooperative H5 : Scale cooperative significant influence to financial performance cooperative H6 : Total liabilities significant influence to financial performance cooperatives H7 : Request External Audit significant influence to financial performance cooperative

The Technique Analysis of Data Observational design The design of this research is causal research design. This is because the study was intended to examine the influences between variables. This research is explanatory research, referred to as aims to explain the influence among variables through hypothesis testing (Malhotra 1999: 212-243). Population and Sample Population in observational it is Cooperative at Javanese East one entire total 28.774. Sample take is done with tech non probabilities by methodic purposive sampling. Sample in observational it total 120 Cooperatives. Methodology The Technique Analysis of Data Analysis techniques used in this research is the path analysis and test of classical assumptions. The data processing is done through the help of a computer program SPSS.

Results and Discussion Based on a classic assumption test results, exogenous variables occur between the multicollinearity between the scale of cooperation with a number of obligations, so that the variable total liabilities incurred from the sub structure 1. While the sub structure 2 occurred multicollinearity between the scale of cooperation with a number of obligations, so that the variable scale cooperative issued from the sub structure 2.

Hypothesis Test Results Path Direct Indirect Probability Information Member to request an audit 0,162 - 0,022* H1 is accepted Scale cooperative to request an audit 0,627 0,000** H2 is accepted Member to financial performance 0,046 0,501 H4 rejected Total liabilities to financial performance 0,235 0,006* H6 is accepted Request an audit to financial performance 0,538 H7 is accepted Member to request an audit to financial performance 0,162 x 0,538 = 0,087 H8 rejected * significant at the  = 5% level ** significant at the  = 1% level 

Financial performance Analysis Research Part Analysis Results Members Є2 = 0,688 0,046 (0,501) 0,162 (0,022) Financial performance Audit Request Scale Cooperative 0,538 (0,000) 0,627 (0,000) 0,235 (0,006) Total Liabilities Є1 = 0,716

Financial performance Final Result of the Analysis Model Members Є2 = 0,688 0,162 (0,022) Financial performance Request an Audit Scale Cooperative 0,538 (0,000) 0,627 (0,000) 0,235 (0,006) Total Liabilities Є1 = 0,716

Conclusion and Suggestion Members of the influential significantly to request external audit services. The study results are consistent with research Carey et al. (2000),

The scale of the cooperative effect significantly to request external audit services. The study results are consistent with research Carey et al. (2000)

Members do not have an effect on financial performance, this is due to lack of members participate in the activities of the cooperative effort. Results of this study are inconsistent with research Djumahir, et al (2001)

The total liabilities significantly to affect the financial performance of the cooperative. This research is different from research conducted by Djumahir, et al (2001) who proved that the obligation or debt could not gauge the level of performance is good or not because its performance has yet to be proved by the interest rate to be paid.

External Audit requests for influential financial performance significantly to the cooperative. This shows that the need for a trusted financial reports it is important to take a decision. The results of this research are consistent with research done Prasetyo (1999) that proves the advice of Auditors relate to the level of independence of the cooperative.

For cooperatives, is expected to maintain or further increase its financial performance and may cooperate with the Auditors by providing data and information needed by the Auditors correctly and accurately so you can help the performance of the auditor in conducting the inspection. Expected a good cooperation between the management of cooperation with the Auditors, the audit work can be completed with a faster time.

TERIMA KASIH