Financial Reporting Quality Research Articles

The Role of Company Age in Moderating the Effect of Political Connections, Audit Committees and Institutional Ownership on the Quality of Financial Reports

This study aims to determine the effect of Political Connections, Audit Committees and Institutional Ownership on the Quality of Financial Reports with Company Age as a moderating variable. Research is an exploratory study conducted to find out and explain more deeply and holistically the characteristics of the variables studied in a situation. The sample used in this study was the LQ45 companies listed on the Indonesia Stock Exchange for the period 2020-2022, while the technical data analysis used in this study was Panel Data Regression and Moderated Regression Analysis. The results of the study provide empirical evidence that Political Connections do not affect the Quality of Financial Reports, the Audit Committee affects the Quality of Financial Reports, Institutional Ownership affects the Quality of Financial Reports, Company Age moderation can strengthen the influence of Political Connections on the Quality of Financial Reports, Company Age moderation can strengthen the influence of the Audit Committee on the Quality of Financial Reports, Company Age moderation can weaken the influence of Institutional Ownership on the Quality of Financial Reports.

Impact of AI Applications on Corporate Financial Reporting Quality: Evidence from UAE Corporations

The research aims to identify the use of artificial intelligence applications as a pivotal technology to improve the quality of financial reports in UAE Corporations, as these applications help process and analyze data quickly and accurately. the problem of the study was the lack of confidence and credibility in the quality of financial reports in Corporations through some fictitious transactions that can affect the profits or losses of those Corporations. due to the effective role provided by artificial intelligence systems in the massive and rapid analysis of data, it was necessary to use these applications and employ them to enhance confidence in financial reports and achieve their quality, the study used Partial least squares (PLS) software in the analysis of the study came to the following conclusions: There is a statistically significant relationship between the use of artificial intelligence applications (AIA) and the quality of financial reporting (QFR) in UAE business Corporations, The study also came up with the following recommendations: The need to highlight the importance of artificial intelligence applications in business Corporations within the UAE, by developing the role of their applications in carrying out various routine and complex tasks and activities

Analisis Strategi Mempertahankan Pengungkapan Kualitas Laporan Keuangan Pemerintah Daerah Provinsi Sumsel Yang Meraih Opini Wajar Tanpa Pengecualian Pada Dinas Pengelolaan Sumber Daya Air Provinsi Sumsel

Research background/Problem: The goodness of the South Sumatra Province regional government's financial reports which have been audited by the Financial Audit Agency (BPK) is seen from 2014 to the present, resulting in an unqualified audit opinion Research objective: What strategies are carried out to assist the disclosures produced in Regional Government Financial Reports that receive an Unqualified Opinion in South Sumatra Province, which are carried out at one of the regional apparatus organizations, namely the South Sumatra Province Water Resources Management Service. Research method: using descriptive qualitative research methods through interviews, observation and documentation with reference to Rangkuti Theory, namely SWOT analysis. research results: Findings obtained through interviews conducted, the author in this research identified important strategies used by the Water Resources Management Service in maintaining good quality financial reports, which have been prepared using SWOT analysis, there are three strategies, namely the use of applications SIPD, reconciliation of monthly financial reports and training and testing of human resource capabilities. Conclusion: Although these findings reveal strengths, there are still several limitations which become weaknesses, namely lack of supervision for employee compliance with regulations, difficulty integrating data from various ongoing projects and programs and lack of monitoring of financial transactions to ensure there are no errors or fraud.

The Role of Corporate Governance in Improving the Quality of Financial Reports An Empirical Study on a Group of Commercial Banks Listed on the Iraq Stock Exchange

The Role of Corporate Governance in Improving the Quality of Financial Reports An Empirical Study on a Group of Commercial Banks Listed on the Iraq Stock Exchange

Human Resource Competence Effect on the Quality of Regional Work Unit of Financial Reports with the Government's Internal Control System

The purpose of this study is to examine the influence of human resource competence on the quality of financial reports of Local Government Work Units (SKPD), with the government internal control system as a moderating variable. This research adopts an explanatory approach utilizing quantitative methods. The population consists of 38 SKPD holding general functional positions responsible for financial reporting in the West Java Provincial Government. The sampling method employed is census, encompassing the entire population as the research sample. Data collection involves primary data gathered through questionnaires. Hypothesis testing utilizes Moderation Regression Model with the assistance of Statistical Product and Service Solution (SPSS) version 25. The findings of this study demonstrate that human resource competence has a positive and significant influence on the quality of SKPD financial reports. However, the government's internal control system does not enhance the influence of human resource competence on the quality of SKPD financial reports. Recommendations stemming from this research include urging the West Java Provincial Government to enhance human resource competence, particularly in accounting cycle skills and regulatory knowledge. Additionally, it is advised to strengthen the Internal Control System (SPIP) with a focus on effective communication of risk management, regular briefing sessions, workload analysis, implementation of measurable rewards and punishments, clear Standard Operating Procedures (SOP), and structured internal control monitoring.

Adoption of International Public Sector Accounting Standards and Financial Reporting Quality in Universities in Rivers State

In spite of the adoption of International Public Sector Accounting Standards (IPSAS) in Nigeria, it appears that significant progress has not been made by public sector organisations in its implementation. The purpose of this study was to investigate the extent to which the adoption of IPSAS has influenced financial reporting quality in universities in Rivers State. Cross sectional survey research design was used for the study and the area of the study was Rivers State, Nigeria. The population of the study was 37 senior Accounting Personnel from the three universities studied. The entire population of 37 was used as sample, hence census was employed for the study. The instrument used for the collection of data was a self-structured questionnaire developed using a four-point rating scale of Very High Extent, High Extent, Moderate Extent and Low Extent. The instrument was validated by two Business Educators and one Measurement and Evaluation expert, all from the Faculty of Education, Rivers State University. The reliability of the instrument was determined using the test re-test method; this was done through the Pearson Product Moment Correlation Coefficient (PPMCC) and a reliability coefficient of 0.96 was obtained. Data was analysed using mean and standard deviation while the hypothesis was tested using one-way Analysis of Variance. Based on the results of the study, it was found that the adoption of international public sector accounting standards has influenced financial reporting quality in universities in Rivers State albeit to a moderate extent. The study further found that there was significant difference in the mean score of Senior Accounting Personnel in the three universities on the extent to which financial performance, financial position and cash flow standards have influenced financial reporting quality in universities in Rivers State. The study concludes that universities in Rivers State are still at an elementary stage of the adoption of IPSAS in the preparation of financial statements and as such the quality of their financial statements cannot be reasonably assured. One recommendation made, amongst others, was that Accounting Personnel of universities in Rivers State, especially those handling Final Accounts, should be made to undergo thorough training on IPSAS to enhance their financial reporting skills; the training should be practical and not theory-based and experts who have been involved in the successful implementation of IPSAS should champion the process.

Leader versus lagger: How the timing of financial reports affects audit quality and investment efficiency

AbstractThis paper examines how relative timing affects the quality of financial reports in a staggered reporting system in which some firms report earlier than others. We show that the audit quality of the leading firm exceeds that of the lagger. Investment efficiency also differs systematically across firms, depending on the relative reporting timing as well as the audit market structure. Audit regulations mitigate the misalignment of interests between auditors and investors but limit the effect of information spillovers. We characterize the socially optimal auditing standards and show how and why imposing minimum audit quality requirements complements and/or substitutes for adjusting auditors' legal liability. Overall, we show that a staggered reporting system dominates a simultaneous reporting system in enhancing audit quality and investment efficiency through regulation.

Pengaruh Kompetensi Sumber Daya Manusia, Gaya Kepemimpinan dan Pemanfaatan Teknologi Informasi terhadap Kualitas Laporan Keuangan Gereja Paroki Wilayah Kota Maumere

The aim of this research is to determine the influence of human resource competence, leadership style and use of information technology on the quality of financial reports of Parish Churches in the Maumere City area. This research uses an associative quantitative approach. The population in this study was the Financial Council taken from 5 Parish Churches in Maumere City, namely 32 respondents. The sampling method used in this research was saturated sampling so that the number of samples obtained was 32 respondents. The data collection process was carried out by distributing questionnaires to respondents, where the research instrument used a Likert scale. The data analysis technique used in this research uses a multiple linear regression analysis model with the help of the IBM SPSS Statistics 26 program. The results of this research show that the variables of human resource competency, leadership style and the use of information technology partially and simultaneously have a significant effect on the quality of the Church's financial reports. Maumere City Parish.

The Impact of Changing External Auditors, Auditor Tenure, and Audit Firm Type on the Quality of Financial Reports on the Saudi Stock Exchange

The purpose of this study is to examine the influences of external auditor firm type, auditor tenure, and external auditor changes on the quality of Saudi Arabian financial reports. In particular, this study examines the quality of financial reports of companies listed on the Saudi Stock Exchange using a widely accepted evaluation model modified by JonesThis study aims to determine whether Big Four and non-Big Four audit firms, auditor tenures of three or more years, and external auditor changes have any impact on the quality of financial reports of Saudi-listed companies. This study uses 175 firm-year observations of 35 companies listed on the Tadawul Saudi Stock Exchange between 2017 and 2021. Using discretionary accruals (DACC) as modified by Jones to measure the quality of financial reports, the findings illustrate that there is a significant negative relationship between Big Four audit firms and DACC. However, the study also shows a significant positive correlation between auditor tenure and DACC. The research revealed that there is no significant relationship between auditor change and DACC. These results have practical implications for policy development. According to the outcomes of this research, there are numerous ramifications for both companies and the government in Saudi Arabia in terms of enhancing the relationship between companies and audit firms and determining the most suitable auditor tenure to improve the quality of financial reports.

Effects of Computerized Accounting Procedures on the Quality of Financial Reporting of Crop Boards in Kilimanjaro

In today's technological world, the use of computerized accounting procedures has become increasingly prevalent across various organizations. Computerized accounting procedures have been employed by organizations for financial record keeping and reporting. Financial reports are an essential source of information needed for different decision makers and other stakeholders. Therefore, this study aimed to establish the effects of computerised accounting procedures on the quality of financial reporting of crop boards in Kilimanjaro region, Tanzania. The study was grounded by Resource-Based View (RBV) developed by Barney in the 1990s. The study applied a descriptive research design under quantitative research approach. Eight (8) crop boards in Moshi Municipality were targeted comprising of Forty (40) staff dealing with accounting and finance. Sample size was obtained through Sample Size Calculation for Finite Population. Data was collected through questionnaires. Face and content validity was used to ensure the validity of the research instruments, and then the instruments were piloted Three (3) accounts and finance employees at Tanzania Coffee board to clarify any ambiguities and checked for consistency of the data to be collected. Reliability was ensured through Cronbach’s alpha test which was run through Statistical Package for Social Sciences (SPSS) and obtained a coefficient of 0.81 which is reliable. Data was analysed through the aid of SPSS and then presented in form of tables, frequencies, percentages and means. Ethical considerations and ethics ethical values were adhered throughout the research process. The study found that computerized accounting procedures had effects on the quality of financial reports of Crop boards in Kilimanjaro region, Tanzania. Basing on the findings it was concluded that the computerized accounting procedures have a positive effect on the quality of financial reporting of Crop Boards in Kilimanjaro. Further, it was concluded that computerized accounting procedures were effective in facilitating decision making and improving the overall quality of financial reporting. This study recommended that Crop Boards in Kilimanjaro should continue using computerized accounting procedures and enhance the system for improved efficiency, accuracy, and accessibility of financial data. Further, it is recommended that Crop Boards should provide training and skill development programs to their accountants. Also, this study provides area for further studies, recommending that further studies could be conducted on the influence of Computerized accounting systems on the Financial Decision Making.

Analysis of Factors Affecting the Quality of Local Government Financial Reports in Mandailing Natal District

Analysis of Factors Affecting the Quality of Local Government Financial Reports in Mandailing Natal District

The Influence of Financial Literacy, Credit Requirements, and Financial Report Quality on Access to Financing for Micro, Small and Medium Enterprises

This study examines the influence of financial literacy, credit requirements, and the quality of financial reports on access to financing for MSMEs in the micro-trade sector in Yogyakarta City. Using a quantitative approach, data were collected from 80 MSME respondents selected through purposive sampling. Data were gathered via questionnaires with a Likert scale and analyzed using Partial Least Square (PLS) version 4.0 to evaluate the measurement and structural models. The findings reveal that financial literacy significantly influences access to financing, indicated by a T-statistic of 2.234 and a P-value of 0.026. This suggests that higher financial literacy among MSME owners facilitates easier access to financing. Credit requirements also significantly affect access, with a T-statistic of 3.259 and a P-value of 0.001, highlighting the impact of complex credit conditions on MSME financing accessibility. However, the quality of financial reports does not significantly affect access, as shown by a T-statistic of 1.057 and a P-value of 0.290, implying that financial reports are not the primary factor in credit decisions for MSMEs. This study emphasizes the importance of improving financial literacy and addressing credit requirements to enhance financing access for MSMEs.

Unveiling the Nexus: Audit Quality and Financial Reporting in Sharia Banks—An Analysis of Non-Financial Matrix

This research investigates the impact of auditor experience and ethical perspectives on audit quality and financial reporting in Sharia banks in Indonesia. Utilizing a quantitative approach and employing Partial Least Squares Structural Equation Modeling (PLS-SEM), the study reveals a positive and significant relationship between auditor experience and both audit quality and the quality of financial reports. Ethical perspectives of auditors are also found to positively influence these outcomes. The findings highlight the importance of investing in auditor expertise and ethical considerations to ensure the integrity and reliability of financial information in Sharia banks. The study contributes valuable insights for practitioners and policymakers in the Islamic finance sector, emphasizing the crucial role of auditor experience and ethical perspectives in enhancing audit quality and financial reporting in Sharia banks.

Efektivitas Pemahaman Standar Akuntansi Sektor Publik terhadap Proses Penyusunan Laporan Keuangan pada Badan Pengelolaan Keuangan Aset Daerah Kabupaten XYZ

The Regional Financial and Asset Management Body (BPKAD) is a regional apparatus that has an important role in managing regional finances as well as creating and realizing accurate and reliable financial reports. This research aims to determine the presenters' understanding of public sector accounting standards in BPKAD district xyz in the process of preparing financial reporting. Encourage the realization of accountability to be responsible to society by reporting finances according to government accounting standards. Consistency in implementing government accounting standards is needed to improve the quality of regional government financial reports (LKPD). This research uses a qualitative approach with a case study method. The results of the research show that the understanding of financial report presenters at BPKAD The recommendations given are the need to increase human resource competency, strengthen coordination between OPDs, and provide more opportunities for staff with expertise or accounting backgrounds to join the agency.

Pengaruh Pemahaman Akuntansi, Tingkat Pendidikan dan Ukuran Usaha terhadap Kualitas Laporan Keuangan Umkm di Kecamatan Teluk Jambe Timur

This study aims to look at the effect of accounting understanding, education level and business size on the quality of MSME financial reports in the Teluk Jambe Timur sub-district. Questionnaires were used to obtain primary data for this quantitative research. In Teluk Jambe Timur sub-district, a sample of 93 MSMEs was selected using the puposive sampling technique. There are four types of tests in this study, namely, multiple linear regression analysis, instrument test, classical assumption test, and hypothesis testing. The findings of this study indicate that the three variables of accounting understanding, education level and business size have an impact on the quality of financial statements. This means that any variable used has the potential to affect how well MSMEs produce their financial reports.

PENGARUH PENERAPAN STANDAR AKUNTANSI PEMERINTAH, SISTEM AKUNTANSI KEUANGAN DAERAH DAN KOMPETENSI SUMBER DAYA MANUSIA TERHADAP KUALITAS LAPORAN KEUANGAN PADA RUMAH SAKIT UMUM DAERAH KABUPATEN BANGLI

This study aims to examine the influence of the implementation of government accounting standards, regional financial accounting systems, and human resource competencies on the quality of financial reports at the Bangli District General Hospital. The study population consists of 181 employees from various departments, with a sample size of 45 people selected using Slovin's formula at a 25% margin of error. The research method used is quantitative, with primary data as the data source. Data analysis employs multiple linear regression analysis using SPSS. The results of this study provide empirical evidence that, partially, the variables of the implementation of government accounting standards, regional financial accounting systems, and human resource competencies have a positive effect on the quality of financial reports at the Bangli District General Hospital. Simultaneously, these variables significantly influence the quality of financial reports at the Bangli District General Hospital

Pengaruh Pengendalian Internal dan Penerapan Akuntansi Terhadap Kualitas Laporan Keuangan pada Kantor Kepala Desa Sionggoton Kec. Simangambat Kab. Padang Lawas Utara

This research aims to determine the influence of internal control and the application of accounting in the office of the Sionggoton village head. This research uses quantitative methods, data collection techniques by distributing questionnaires and the sample in this research was 30 people in the office of the Sionggoton village head using a saturated sampling technique. The results of the research show that internal control and the application of accounting have a positive and significant effect on the quality of financial reports, namely that there is a positive influence of internal control on the quality of financial reports in the office of the Sionggoton village head; The quality of financial reports at the Sionggoton village head's office is positively influenced by the application of accounting; The quality of financial reports at the Sionggoton village head's office is influenced positively and significantly by the application of accounting principles and internal control.

The Role of Internal Audit Practices in Improving The Quality of Financial Reporting for Commercial Companies. A Sample of Iraqi Commercial Banks

The research aims to explain the role of internal audit standards in improving the quality of financial reporting for the financial reports of the banks in the research sample. Accordingly, the deductive approach was followed for the theoretical side and the inductive approach for the practical side by employing standards for internal audit standards and their role in achieving quality in financial reporting for the financial reports of the banks in the research sample. The most important conclusions were that standards standards Internal auditing has a role in achieving and improving the quality of financial reporting for the Bank of Sumer first, then the Iraqi Gulf Bank secondly, and the Assyria Bank last. The most important recommendations were to document and confirm the application of the internal audit standards for the Bank of Assyria first and the Iraqi Gulf Bank secondly by virtue of the assessments of appropriateness standards, honest representation and the appropriate timing for presenting the financial statements within Bankers' reports.

Corporate Attributes and Financial Reporting Quality of Listed Information Communication Technology Firms in Nigeria

The demand for high quality financial information is increasing. It has become imperative in a developing economy such as Nigeria, especially in the information communication technology (ICT) sector due to globalisation and expansion of businesses beyond the national borders. Accordingly, companies are obliged to satisfy the information needs of both local and foreign investors by providing them with relevant and comparable financial reports. The main objective of this study was to examine the effect of corporate attributes on financial reporting quality of ICT firms listed on the floor of Nigeria Exchange Group from 2013-2022. The independent variable of the study being corporate attributes was proxied by firm size, firm age, firm profitability, auditor type and assets tangibility while the dependent variable being financial reporting quality was measured using the IASB Conceptual Framework qualitative characteristic model. The research design adopted in this study was ex post facto, secondary data was used and the population of study was 11 listed ICT firms in Nigeria. The hypotheses of the study was tested using pool ordinary least square technique and the statistical package employed was E-views version 10. From the outcome of the analysis, it was found out that firm size has a significant but negative effect on the financial reporting quality; firm age has an insignificant negative effect on the financial reporting quality; firm profitability has a negative and insignificant effect on the financial reporting quality; auditor type has significant positive effect on financial reporting quality; firm asset tangibility has a significant but negative effect on the financial reporting quality of ICT firms in Nigeria. Thus, it was concluded that corporate attributes enhance financial reporting quality of firms in Nigeria. Based on the foregoing, it was recommended among others that the management of ICT firms should carefully select reputable and experienced audit firms to enhance the credibility and reliability of their financial statements. More also, ICT firms should reduce the amount of tangible non-current assets in their assets base as they have negative influence on financial reporting quality.

The Impact of Financial Report Quality and Performance-Based Budget Implementation on the Accountability Performance of Government Agencies with Accounting Control as a Moderator

This study aims to examine the influence of accounting controls in moderating the relationship between financial reporting quality, the implementation of performance-based budgeting, and performance accountability of government agencies in Local Government Work Units (SKPD) across Bogor City. The research employs a quantitative approach using Structural Equation Modeling (SEM) with PLS software and IBM Statistics SPSS 26.0. The unit of analysis consists of employees with specific criteria within the Regional Apparatus Organizations of Bogor City. The sample consisted of 144 respondents, and data collection was conducted through a questionnaire. The results of the study indicate that financial reporting quality and the implementation of performance-based budgeting have a positive impact on the performance accountability of government agencies in SKPD Bogor City. Furthermore, accounting controls positively moderate the relationship between financial reporting quality and the implementation of performance-based budgeting on the performance accountability of government agencies across SKPD in Bogor City. Keywords: accounting control, quality of financial reports, implementation of performance-based budgeting, accountability for the performance of government agencies