Analysis of Factors Influencing the Quality of Local Government Financial Reports

(1) Yunus Tulak Tandirerun Mail (Politeknik Negeri Samarinda, Indonesia)
(2) * La Ode Hasiara Mail (Politeknik Negeri Samarinda, Indonesia)
(3) Noor Fachman Tjete Mail (Politeknik Negeri Samarinda, Indonesia)
(4) Mat Juri Mail (Politeknik Negeri Samarinda, Indonesia)
*corresponding author


This study intends to determine and analyze the influence and relationship: between information technology, internal control system, Parameters of Government Accounting, Quality of financial reports, information technology, System internal control, direct implementation of Government Accounting Standards, the indirect relationship of information technology, System control indirect relationship, indirect effect on the implementation of Government Accounting Standard through indirect effect on information technology. This study employs a quantitative approach based on Partial Least Squares (PLS). Examined from the perspective of the first equation, this study's findings reveal that organizational commitment, information technology, and internal control systems have direct and significant effects on the quality of financial reports. Implementing government accounting standards concurrently enhances the quality of financial reports. In contrast to the second equation, which indicates that organizational commitment and technology have a significant effect on good governance, control has a positive and insignificant effect on good governance, whereas accounting parameter implementation has a negative and insignificant effect on good governance. In addition, organizational commitment, the use of technology, and internal control have a significant impact on the quality of financial reporting, an indicator of effective governance. In contrast, the use of accounting principles has a positive and insignificant effect on excellent governance management through the quality of financial reporting


Good Governance, Government Finance, Influence, Quality Report



Article metrics

10.29099/ijair.v6i1.2.605 Abstract views : 65 | PDF views : 24




Full Text



Y. Quan, S. Li, and S. Liang, “Chasing political resources by listed companies: a perspective on hiring non-local independent directors from Beijing,” China J. Account. Stud., vol. 5, no. 3, pp. 361–378, Jul. 2017, doi: 10.1080/21697213.2017.1383056.

N. Sangperm, “Factors affecting organizational commitment of employees of Autonomous University,” PSAKU Int. J. Interdiscip. Res., vol. 6, no. 1, 2017.

C. B. Agyemang and S. B. Ofei, “Employee work engagement and organizational commitment: A comparative study of private and public sector organizations in Ghana,” Eur. J. Bus. Innov. Res., vol. 1, no. 4, pp. 20–33, 2013.

P. Kihara, H. Bwisa, and J. Kihoro, “The role of technology in strategy implementation and performance of manufacturing small and medium firms in Thika, Kenya,” Int. J. Bus. Soc. Sci., vol. 7, no. 7, pp. 156–165, 2016.

O. N. Joseph, O. Albert, and J. Byaruhanga, “Effect of internal control on fraud detection and prevention in district treasuries of Kakamega County,” Int. J. Bus. Manag. Invent., vol. 4, no. 1, pp. 47–57, 2015.

M. M. Yusof, A. Papazafeiropoulou, R. J. Paul, and L. K. Stergioulas, “Investigating evaluation frameworks for health information systems,” Int. J. Med. Inform., vol. 77, no. 6, pp. 377–385, Jun. 2008, doi: 10.1016/j.ijmedinf.2007.08.004.

R. Nado, M. Chams, J. Delisio, and W. Hamscher, “COMET: An application of model-based reasoning to accounting systems,” AI Mag., vol. 17, no. 4, p. 55, 1996.

P. Spanos and K. Liapis, “International Accounting Standards, Budgeting and Controlling in Private and Public Sector,” KnE Soc. Sci., pp. 107–130, 2018.

A. Florou, U. Kosi, and P. F. Pope, “Are international accounting standards more credit relevant than domestic standards?,” Account. Bus. Res., vol. 47, no. 1, pp. 1–29, Jan. 2017, doi: 10.1080/00014788.2016.1224968.


S. K. Herath and N. Albarqi, “Financial reporting quality: A literature review,” Int. J. Bus. Manag. Commer., vol. 2, no. 2, pp. 1–14, 2017.

J. F. Andry, “Perancangan Arsitektur Bisnis Pada Industri Aluminium Foil Menggunakan Togaf,” IT J. Res. Dev., vol. 5, no. 1, pp. 98–108, 2020, doi: 10.25299/itjrd.2020.vol5(1).4755.

P. E. Juliana Jaya, M. S. Utama, I. G. W. Murjana Yasa, and N. N. Yuliarmi, “Improving competitiveness and well-being through human resources quality, local culture, and product performance,” Cogent Bus. Manag., vol. 7, no. 1, p. 1831247, Jan. 2020, doi: 10.1080/23311975.2020.1831247.

I. Literat and V. P. Glaveanu, “Distributed creativity on the internet: a theoretical foundation for online creative participation,” Int. J. Commun., vol. 12, p. 16, 2018.

H. Tae and C. Kim, “Oscar Hemer and Thomas Tufte (Eds.), Voice + Matter: Communication, Development and the Cultural Return, Göteborg, Sweden: Nordicom, 2016, 266 pp., €32 (paperback).,” vol. 12, pp. 3784–3787, 2018.

A. G. Koutoupis and E. Pappa, “Corporate governance and internal controls: a case study from Greece,” J. Gov. Regul., no. 7, Iss. 2, pp. 91–99, 2018.

D. Palupi and B. H. Santoso, “An empirical study on the Theory of Planned Behavior: The effect of gender on entrepreneurship intention,” J. Econ. Business, Account. Ventur., vol. 20, no. 1, pp. 71–79, 2017.

F. Kabuye, J. Kato, I. Akugizibwe, and N. Bugambiro, “Internal control systems, working capital management and financial performance of supermarkets,” Cogent Bus. Manag., vol. 6, no. 1, Jan. 2019, doi: 10.1080/23311975.2019.1573524.

Z. Ahmed, E. Eryilmaz, and A. I. Alzahrani, “IS diffusion: A dynamic control and stakeholder perspective,” Inf. Manag., vol. 59, no. 1, p. 103572, Jan. 2022, doi: 10.1016/

R. B. Sharma and N. A. Senan, “A study on effectiveness of internal control system in selected banks in saudi Arabia,” Asian J. Manag. Sci., vol. 8, no. 1, pp. 41–47, 2019.

A. I. Morais and A. I. Morais, “Are changes in international accounting standards making them more complex ?,” Account. Forum, vol. 0, no. 0, pp. 1–29, 2019, doi: 10.1080/01559982.2019.1573781.

I. Astuti, “The implementation of ADDIE model in developing career guidance program in senior high school,” J. Educ. Teach. Learn., vol. 4, no. 1, pp. 174–179, 2019.

S. Soeharjoto, D. A. Tribudhi, and L. Nugroho, “Fiscal regency and city capacity in East Kalimantan in the era of regional autonomy,” Int. J. Econ. Bus. Account. Res., vol. 4, no. 02, 2020.

A. Ong, “The failure of international accounting standards convergence: A brief history,” Rev. Integr. Bus. Econ. Res., vol. 7, no. 3, pp. 93–105, 2018.

H. A. Mohamud, “Internal auditing practices and internal control system in Somali Remittance Firms,” Int. J. Bus. Soc. Sci., vol. 4, no. 4, 2013.

H. Zhou, C. Zhou, W. Lin, and G. Li, “Corporate governance and credit spreads on corporate bonds: an empirical study in the context of China,” China J. Account. Stud., vol. 5, no. 1, pp. 50–72, Jan. 2017, doi: 10.1080/21697213.2017.1292722.

L. O. Hasiara, Sudarlan, and A. M. Diah, “Regional government management strategy in achieving unqualified opinion (UQO) in east Kalimantan Province, Indonesia,” Int. J. Innov. Creat. Chang., vol. 12, no. 9, pp. 271–282, 2020.

H. La Ode and A. M. Diah, “Sudarlan, Metode Penelitian Terapan Kualitatif dan Kuantitatif Untuk Pendidikan Vokasi Khusus Humaniora.” Malang, Jawa Timur Indonesia: CV IRDH, 2019.

N. Sehwani, S. Rahman, and A. Harris, “QoS Parametric Inspection of Uniform and Assorted Trajectories for MANET Routing Protocols,” Int. J. Commun. Netw. Syst. Sci., vol. 10, no. 10, 2017.

G. Maier, “Grant Bollmer, Inhuman Networks: Social Media and the Archaeology of Connection,” Int. J. Commun., vol. 12, p. 4, 2018.

R. Andika Thio Rahman, G. Irianto, and R. Rosidi, “Evaluation of E-Budgeting Implementation in Provincial Government of DKI Jakarta Using CIPP Model Approach,” J. Account. Invest., vol. 20, no. 1, 2019, doi: 10.18196/jai.2001110.

O. Zedadra et al., “The Commissioner of Law,” Freni, G., La Loggia, G., Notaro, V., McGuire, TJ, Sjoquist, DL, Longley, P., Batty, M., Chin, N., McNulty, J., Tver. KAA,… Thesis, A, pp. 1–14, 2019.

K. A. Rahayu and D. Setiawan, “Apakah konvergensi International Financial Reporting Standards meningkatkan relevansi nilai informasi akuntansi?,” J. Ekon. dan Bisnis, vol. 22, no. 1, pp. 63–82, Apr. 2019, doi: 10.24914/jeb.v22i1.2101.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.


International Journal Of Artificial Intelligence Research

Organized by: Departemen Teknik Informatika STMIK Dharma Wacana
Published by: STMIK Dharma Wacana
Jl. Kenanga No.03 Mulyojati 16C Metro Barat Kota Metro Lampung


View IJAIR Statcounter

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.