The Influence of the Use of Information Technology and Public Accountability on the Quality of Financial Reports in Government Organizations

Abstract

Objective: This research aims to analyze the relationship between the use of information technology and the quality of financial reports, to analyze the relationship between public accountability and the quality of financial reports. Method: This type of research is classified as quantitative research. Quantitative research is research that emphasizes testing theory - by measuring research variables based on the philosophy of positivism, studying a certain population or sample, collecting data using research tools, analyzing quantitative/statistical data with the aim of testing a given hypothesis. Research data was obtained by distributing an online questionnaire designed using a Likert scale of 1 to 7. The independent research variables were the use of information technology and public accountability. The research sample was 450 government employee respondents. These respondents are known to know best and assess the quality of financial reports. Data analysis used partial least squares (PLS) structural equation modeling (SEM) with SmartPLS 3.0 software tools. The data analysis stage is to assess the validity and reliability of a construct. The tests carried out are Convergent Validity, Discriminant Validity, Cronbach's Alpha and Composite Reliability. The Structural Model (Inner Model) is a measurement to evaluate the level of accuracy of the model in research, the tests carried out are R-Square, F-Square and Path Analysis. Result: Based on the structural equation modeling analysis, the p value is 0.00 < 0.050 and the patch coefficient is positive so that there is a positive and significant relationship between information technology and the quality of financial reports and there is a positive and significant relationship between financial accountability and the quality of financial reports. Conclusion: Based on the results of the analysis, it is found that the use of information technology has a positive effect on the quality of financial reports, Public Accountability has a positive effect on the quality of financial reports. This means that the more accountable financial management and financial reporting, the more performance will improve. High accountability in financial management is expected to increase public trust in the government so that it can create a good investment climate. It is believed that the implementation of accountability will be able to improve the performance of government organizations. The use of information technology has a positive and significant effect on the quality of financial reports and the use of information technology has a significant positive effect on the quality of financial reports. Information technology functions as technology that processes and stores information and disseminates information. The process of processing transaction data and presenting financial reports can be accelerated by the use of good technology so that the value of the information contained in financial reports is not lost.