Good Governance Based on Local Wisdom and tts Implications for The Quality of Accounting Information of Lpd in Bali (Case Study of Canggu Traditional Village)

The Village Credit Institution (Lembaga Perkreditan Desa or LPD) is a traditional community-based financial entity that plays a strategic role in empowering the Balinese economy. In terms of governance, the implementation of good governance principles aligned with local values is key to ensuring transparency, accountability, and the quality of financial reporting. This study aims to examine the practice of good governance based on local wisdom and its implications for the quality of accounting information in LPD, using a case study of the LPD of Desa Adat Canggu, which received an Unqualified Opinion (WTP) from the regional government auditor.The research adopts a qualitative descriptive method with an exploratory approach through in-depth interviews, participatory observation, and document analysis. The findings reveal that the implementation of good governance principles at the LPD of Desa Adat Canggu such as transparency, accountability, responsibility, independence, and fairness is internalized through traditional value systems and the Tri Hita Karana philosophy. This local wisdom-based governance has a positive impact on enhancing the quality of accounting information, particularly in terms of relevance, reliability, and readability of financial statements. Informal oversight mechanisms through village councils (paruman desa) and customary laws (awig-awig) further strengthen the integrity and social legitimacy of LPD financial management. However, this study is limited in scope, as external factors such as regional government policies and socio-economic dynamics of the community have not been explored in depth regarding their influence on governance and information quality.