The Effect of Financial Statement Presentation, Public Transparency, and Internal Control Systems on Regional Financial Accountability

Abstract

Regional Government Financial Reports are intended to provide useful information for decision making and represent the reporting entity’s responsibility for the resources entrusted. Access to and monitoring the quality of financial reporting improves accountability and transparency in regional financial management. The aim of this study is to obtain empirical evidence on the effect of financial statement presentation, public transparency, and internal control systems on regional financial accountability. The object of this research is the head of the finance department, the head of the finance & reporting sub-section and the employees of the finance & reporting department. This research was conducted at the DKI Jakarta Regional Government Office, with 92 respondents. Methods of data collection are done by using a questionnaire and the data analysis technique uses multiple linear regression analysis with the help of the SPSS program. The results of the study show that the Financial Statement Presentation and the Internal Control System have a positive and significant effect on Regional Financial Accountability. Meanwhile, Public Transparency has no effect on Regional Financial Accountability.