A Look at How Regional Financial Accounting, Government Internal Control, and IT Affect Financial Statement Quality

Abstract

This correlational study aims to explain the impact of the Regional Financial Accounting System (SAKD), the Government Internal Control System (SPIP), and the Use of Information Technology on the Quality of Regional Financial Reports at the Regional Apparatus Organization of Papua Province. The sampling technique is a Saturated sample of 67 respondents who perform duties as general treasurer/assistant/assistant, regional financial report system operator, or financial report verification section. According to the findings of this investigation, the regional financial accounting system needed to be implemented optimally. Supposedly, the implementation of the regional financial accounting system facilitates the achievement of quality regional financial management by local administrations. Implementing the regional accounting system has not optimally contributed to producing high-quality regional financial reports. The effectiveness of the government's internal control system can influence the quality of local government financial reports by continuously applying critical processes to actions and activities carried out by leaders and all employees to provide sufficient assurance of achieving organizational goals through effective and efficient workouts. Utilizing information technology in the OPD environment of the Papua Provincial Government has enhanced the role of information technology in improving the integrity of Local Government Financial Statements.Keywords:Regional Financial Accounting System, Government Internal Control System, Information Technology and Quality of Financial Statements.

Human Competencies: Amplifying Financial Reporting Quality in Indonesian Local Government

“…High-quality financial reports reflect the reliability of presented information, adherence to accounting standards, and adequate disclosure (Dabbicco & Mattei, 2021). Good governance supports this quality through effective oversight and internal control mechanisms (Sonjaya & Muslim, 2023). For instance, transparency encourages organizations to present clear and accessible financial information to stakeholders, while accountability ensures that those responsible for financial management are answerable for their actions.…”

“…This system comprehensively covers the processes of recording, classifying, interpreting, summarizing financial transactions, and reporting financial data for the execution of the regional budget (APBD). Furthermore, the Regional Financial Accounting System fundamentally involves identifying, measuring, and reporting the economic and financial transactions of a specific region to provide essential information for economic decision-making (Surjono, 2021; Sonjaya & Muslim, 2023; Yuesti et al, 2022). Thus, SAKD is essentially a coherent set of procedures, spanning from initial data collection to final financial reporting, designed for accountability in APBD execution, regardless of whether it is performed manually or with computer assistance.…”

Human Competencies: Amplifying Financial Reporting Quality in Indonesian Local Government

“…High-quality financial reports reflect the reliability of presented information, adherence to accounting standards, and adequate disclosure (Dabbicco & Mattei, 2021). Good governance supports this quality through effective oversight and internal control mechanisms (Sonjaya & Muslim, 2023). For instance, transparency encourages organizations to present clear and accessible financial information to stakeholders, while accountability ensures that those responsible for financial management are answerable for their actions.…”

“…This system comprehensively covers the processes of recording, classifying, interpreting, summarizing financial transactions, and reporting financial data for the execution of the regional budget (APBD). Furthermore, the Regional Financial Accounting System fundamentally involves identifying, measuring, and reporting the economic and financial transactions of a specific region to provide essential information for economic decision-making (Surjono, 2021; Sonjaya & Muslim, 2023; Yuesti et al, 2022). Thus, SAKD is essentially a coherent set of procedures, spanning from initial data collection to final financial reporting, designed for accountability in APBD execution, regardless of whether it is performed manually or with computer assistance.…”

Budget Planning and Internal Control on Local Financial Accountability: Mediating Budget Absorption

“…The government's internal control system impacts the effectiveness of regional financial management in the Pekanbaru City government (Sonjaya & Muslim, 2023). The effectiveness of the government's internal control system can influence the quality of local government financial reports by continuing to apply critical processes to the actions and activities carried out by leaders and all employees to provide adequate guarantees to achieve organizational goals through effective and efficient practices (Istiqamah et al, 2023).…”

Human Competencies: Amplifying Financial Reporting Quality in Indonesian Local Government

“…High-quality financial reports reflect the reliability of presented information, adherence to accounting standards, and adequate disclosure (Dabbicco & Mattei, 2021). Good governance supports this quality through effective oversight and internal control mechanisms (Sonjaya & Muslim, 2023). For instance, transparency encourages organizations to present clear and accessible financial information to stakeholders, while accountability ensures that those responsible for financial management are answerable for their actions.…”

“…This system comprehensively covers the processes of recording, classifying, interpreting, summarizing financial transactions, and reporting financial data for the execution of the regional budget (APBD). Furthermore, the Regional Financial Accounting System fundamentally involves identifying, measuring, and reporting the economic and financial transactions of a specific region to provide essential information for economic decision-making (Surjono, 2021; Sonjaya & Muslim, 2023; Yuesti et al, 2022). Thus, SAKD is essentially a coherent set of procedures, spanning from initial data collection to final financial reporting, designed for accountability in APBD execution, regardless of whether it is performed manually or with computer assistance.…”

Budget Planning and Internal Control on Local Financial Accountability: Mediating Budget Absorption

“…The government's internal control system impacts the effectiveness of regional financial management in the Pekanbaru City government (Sonjaya & Muslim, 2023). The effectiveness of the government's internal control system can influence the quality of local government financial reports by continuing to apply critical processes to the actions and activities carried out by leaders and all employees to provide adequate guarantees to achieve organizational goals through effective and efficient practices (Istiqamah et al, 2023).…”

Human Competencies: Amplifying Financial Reporting Quality in Indonesian Local Government

“…High-quality financial reports reflect the reliability of presented information, adherence to accounting standards, and adequate disclosure (Dabbicco & Mattei, 2021). Good governance supports this quality through effective oversight and internal control mechanisms (Sonjaya & Muslim, 2023). For instance, transparency encourages organizations to present clear and accessible financial information to stakeholders, while accountability ensures that those responsible for financial management are answerable for their actions.…”

“…This system comprehensively covers the processes of recording, classifying, interpreting, summarizing financial transactions, and reporting financial data for the execution of the regional budget (APBD). Furthermore, the Regional Financial Accounting System fundamentally involves identifying, measuring, and reporting the economic and financial transactions of a specific region to provide essential information for economic decision-making (Surjono, 2021; Sonjaya & Muslim, 2023; Yuesti et al, 2022). Thus, SAKD is essentially a coherent set of procedures, spanning from initial data collection to final financial reporting, designed for accountability in APBD execution, regardless of whether it is performed manually or with computer assistance.…”

Budget Planning and Internal Control on Local Financial Accountability: Mediating Budget Absorption

“…The government's internal control system impacts the effectiveness of regional financial management in the Pekanbaru City government (Sonjaya & Muslim, 2023). The effectiveness of the government's internal control system can influence the quality of local government financial reports by continuing to apply critical processes to the actions and activities carried out by leaders and all employees to provide adequate guarantees to achieve organizational goals through effective and efficient practices (Istiqamah et al, 2023).…”