Influence of Internal Control and Implementation of Accounting Information Systems on The Quality of Regional Government Financial Reports

Abstract

The research aims to assess the impact of internal control and the installation of accounting information systems on the quality of financial statements in local government. The independent variables examined in this study are internal control and accounting information systems. The dependent variable being investigated is the quality of local government financial statements. The population in this study consists of the work units (SKPD) in Bandung. The sample was selected using purposive sampling, and it includes employees from various institutions such as Inspektorat, BPK, BPPD, Office of Communications and Information, Library and Archives, Office of Investment and PTSP, Office of Spatial Planning and Administration, Administrative Assistant, and Finance Department. The sample includes employees with decision-making authority, such as heads of field and heads of sub-sections. Data collection is conducted by disseminating questionnaires to 50 participants within the organization. This study employed multiple linear regression analysis utilizing the SPSS 23.0 tool for Windows. The research findings indicate that internal control has a significant positive impact of 47.2% on the quality of financial statements in local government. Similarly, the deployment of accounting information systems has a positive effect of 23.6% on the quality of financial statements in local government. The internal control and accounting information systems have a combined impact of 55.3% on the quality of local government financial statements, while the provisions contribute 44.7%.