The Factors Influencing The Quality of Financial Statements

Abstract

This study aims to examine the effect of Human Resource Competence, Accounting Information System, Internal Control System, Leadership Style and Organizational Commitment to the Quality of Financial Statements (Study on All OPDs in Padang Lawas Regency). The previous study chose the research location in the Karangasem Regency Regional Government, while this research was located in Padang Lawas Regency/City, North Sumatra. This research was conducted because it was found that the quality of the financial statements of Padang Lawas Regency was still lacking. The population in this study is all OPDs in Padang Lawas Regency. The sampling technique in this study uses the purposive sampling method and samples were obtained in this study as many as 28 OPDs in Padang Lawas Regency. The data used in this study is primary data, namely by using a questionnaire as a data collection tool. The data analysis technique in this study uses validity tests, reliability tests and hypothesis tests with the help of the Structural Equation Modeling (SEM). The results of this study show that the variables of Human Resources Competence, Internal Control System and Organizational Commitment have an effect on the Quality of Financial Statements. This shows that the level of compliance with accounting standards is high. Meanwhile, the variables of Accounting Information System and Leadership Style have no effect on the Quality of Financial Reports in OPDs in Padang Lawas Regency. Because brainware is still needed that can support SIA in OPD.