THE EFFECT OF ORGANIZATIONAL CULTURE, WORK ETHIC, KNOWLEDGE LEVEL OF ACCOUNTING, AND MORAL HAZARD ON THE QUALITY OF COMPANY’S FINANCIAL REPORT INFORMATION (The study is accounting and finance employees in the whole national private company in Gresik)

Yanuar Lazuardi,Abid Muhtarom

doi:10.24127/akuisisi.v13i2.185

Abstract

This research was conducted to test the effect of independent variables, they are organizational culture, work ethic, level knowledge of accounting and accountant’s moral hazard on the dependent variable, that is the quality of company's financial report information, either simultaneously or partially. The type of this research is causal associative with quantitative approach, the research aims to determine the effect of two or more variables, with the approach of testing the theory by measuring the variables with numbers and analyze the data with statistical procedures. The population of this study is the accounting and finance employees in the whole national private company in Gresik. Sampling was done by nonprobability sampling method with judgement sampling approach, the results of selected judgement sample is the accounting and finance employees in 13 companies. The data source used is primary data derived from the answers of respondents in the research questionnaire. The data are processed with SPSS 16.0 for Windows with multiple linear regression test. The results of this research show that: 1) Simultaneously, the variable of organizational culture, work ethic, knowledge level of accounting and accountant’s moral hazard affect the quality of company's financial report information. 2) Partially from four independent variables, the variable of organizational culture does not have a strong influence on the dependent variable quality of the company's financial report information.

Highlights

The financial reportis the production result of the accounting process to present economic information about the company’s financial position of quantitative and needed as a tool for making strategic decision by both internal and external parties
2) Partially from four independent variables, the variable of organizational culture does not have a strong influence on the dependent variable quality of the company's financial report information
According to SFAC No 2 of 1980, Qualitative Characteristics of Accounting Informationsigned that qualified accounting information should show greater benefits than the costs spent to provide the information, which the accounting information can be said to be qualified if the users of financial report based on their understanding and knowledge can understand and use accounting information which is presented as a basis for decision making

Summary

Introduction

The financial reportis the production result of the accounting process to present economic information about the company’s financial position of quantitative and needed as a tool for making strategic decision by both internal and external parties. In order to serve as an appropriate tool in strategic decision-making, the information presented in the financial report must be qualified. The financial report is said qualified, if it contains information that is relevant, reliable, comparable and understandable. In line with the contents of SFAC No 2 of 1980 above, FASB stated that the financial report presented by the company must meet the elements of reporting requirements, they are relevance and reliably. The principle of relevance implies that the information presented in the financial statements must fulfill the requirements such as, has feedback value, has predictive value, on time and complete, while the principle of reliable contains a very widedefinition that is a report presented by the company’s managementshould be assured from the elements of material misstatement, transparent and accountable. The principle of comparablemeans the information contained in the financial report will be more useful if it can be compared with prior year financial reports or financial reports of other entities in general, while the principle of understandable implies that the information presented in the financial report is able to interpret theinformation presented inside

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Conclusion