<![CDATA[This study examines the effectiveness of Follow-up actions on BPK recommendations in explaning the relationship between audit findings, capital expenditure, and local government financial performance. This quantitative study aims to examine the effect of audit findings and capital expenditure on financial performance, with follow-up actions on BPK recommendations serving as a mediating variable. The sample consisted of regencies and cities in West Kalimantan during the 2021-2024 period, with a total of 56 observations, to examine the influence of local government financial performance. Data obtained from local government financial reports and semiannual audit reports published by the BPK were analyzed using WarpPLS. The results indicate that audit findings and capital expenditure do not affect the follow-up of recommendations, yet they significantly influence financial performance. Furthermore, follow-up actions have no significant effect on financial performance and fail to act as a mediator. This study concludes that BPK’s follow-up recommendation mechanism has not yet served as an effective corrective tool.]]>
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