The Impact of Government Accounting Standards Implementation, Internal Control Systems, and Human Resource Competence on Regional Financial Report Quality
Keywords:
Government Accounting Standards Implementation, Internal Control Systems, Human Resource Competence, Regional Financial Report Quality
Abstract
This study introduces a comprehensive model that simultaneously investigates the interplay of Government Accounting Standards Implementation, Internal Control Systems, and Human Resource Competence in determining regional financial report quality. This study employs a quantitative research design. The sample size for this study is 96 respondents, meeting the minimum requirement for Structural Equation Modeling (SEM) analysis. Only human resource competence can improve regional financial report quality. These findings align with Agency Theory, emphasizing that competent agents (human resources) are critical for reducing information asymmetry and improving financial reporting. They also connect to Institutional Theory, illustrating that formal systems like GAS and ICS require human agency to operationalize institutional norms effectively. Finally, the results support Resource-Based Theory (RBT), highlighting HRC as a strategic resource that drives organizational success in financial reporting. Future studies should explore the impact of external audits, political stability, and organizational culture on financial report quality.
References
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Goh, M., Wijaya, E., Junaedi, A. T., & Hocky, A. (2022). Customer Interest in Using Mandiri M-Banking: Can Ease of Use, Trust, Information Technology Readiness, and Social Factors Affect It? International Conference on Business Management and Accounting (ICOBIMA), 1(1), 143–153.
Habibi, Junaedi, A. T., Sudarno, Rahman, S., & Momin, M. M. (2022). Organizational Commitment, Job Satisfaction, and Locus of Control on Employee Turnover Intention and Performance at PT. Sekarbumi Alam Lestari. Journal of Applied Business and Technology, 3(2), 177–192.
Hadi, S., Renaldo, N., Purnama, I., Veronica, K., & Musa, S. (2023). The Impact of Decentralized Finance (DeFi) on Traditional Banking Systems: A Novel Approach. Proceeding of International Conference on Business Management and Accounting (ICOBIMA), 2(1), 295–299. https://doi.org/https://doi.org/10.35145/icobima.v2i1.4376
Imarni, Chandra, T., & Ginting, Y. M. (2022). Leadership, Discipline, and Organizational Culture on Job Satisfaction and Teacher Performance at State Junior High Schools in Bandar Petalangan District, Pelalawan Regency. Journal of Applied Business and Technology, 3(3), 272–286.
Junaedi, A. T., Renaldo, N., Yovita, I., Augustine, Y., & Veronica, K. (2023). Uncovering the Path to Successful Digital Performance through Digital Technology and Digital Culture as Moderation. Proceeding of International Conference on Business Management and Accounting (ICOBIMA), 2(1), 71–81. https://doi.org/https://doi.org/10.35145/icobima.v2i1.3959
Juprizon, Chandra, T., & Komardi, D. (2022). Work Environment, Compensation, and Supervision on Job Satisfaction and Teacher Performance at SMA Negeri 1 Kampar. Journal of Applied Business and Technology, 3(3), 235–250.
Kartika, V. N., & Ningsih, S. (2024). The Influence of Internal Control Systems, Implementation of Government Accounting Standards, and Human Resource Competence on Financial Report Quality. Jurnal Akuntansi Dan Auditing, 21(1), 24–38.
Maspaitella, M. R., & Mokodompit, M. P. (2022). The Anticedents of Local Government Financial Report Quality. Global Financial Accounting Journal, 06(01), 31–38. https://doi.org/10.4108/eai.1-10-2020.2305639
Muhrodin, M., Sudarno, S., Junaedi, A. T., Andi, A., & Putri, N. Y. (2024). The Effect of Motivation, Organizational Culture, Competency on Work Commitment and Performance of SD Teachers in Bengkalis District. Interconnection: An Economic Perspective Horizon, 1(4), 198–217. https://doi.org/https://doi.org/10.61230/interconnection.v1i4.71
Nafisah, A. N., Zulaihati, S., & Mardi, M. (2023). The Effect of Adversity Quotient and Family Environment on Entrepreneurial Intention on Faculty of Economics of Jakarta State University. Reflection: Education and Pedagogical Insights, 1(3), 89–98. https://firstcierapublisher.com/index.php/reflection/article/view/46
Napitupulu, B., Sudarno, & Junaedi, A. T. (2021). Budget Realization as a Management Control Tool for Company Performance at PT. Pelabuhan Indonesia I (Persero) Pekanbaru Branch. Journal of Applied Business and Technology, 2(3), 243–250.
Parindingan, F. Y., Haliah, H., & Nirwana, N. (2024). Evaluation of Transparency and Accountability of Regional Government Financial Reports in the Digitalization Era. Journal of Accounting and Finance Management, 5(5), 1051–1058.
Purwati, A. A., Hamzah, Z., Hamzah, M. L., & Deli, M. M. (2023). Digital and Entrepreneurial Literacy in Increasing Students’ Entrepreneurial Interest in the Technological Era. Proceeding of International Conference on Business Management and Accounting (ICOBIMA), 2(1), 34–43. https://doi.org/https://doi.org/10.35145/icobima.v2i1.3498
Putra, R., & Kudri, W. M. (2024). Fueling Success: Unleashing the Power of Motivation, Nurturing Work Environments, and Cultivating Organizational Culture for Peak Job Satisfaction and Performance. Luxury: Landscape of Business Administration, 2(1), 71–84. https://doi.org/https://doi.org/10.61230/luxury.v2i1.72
Renaldo, N., Andi, Putri, N. Y., & Yani, F. (2023). Development of Teaching Materials for a New Accounting Paradigm: From Concepts to Green Accounting Types. Proceeding of International Conference on Business Management and Accounting (ICOBIMA), 1(2), 443–451. https://doi.org/https://doi.org/10.35145/icobima.v1i2.3078
Renaldo, N., & Augustine, Y. (2022). The Effect of Green Supply Chain Management, Green Intellectual Capital, and Green Information System on Environmental Performance and Financial Performance. Archives of Business Research, 10(10), 53–77. https://doi.org/10.14738/abr.1010.13254
Renaldo, N., Sudarno, Hutahuruk, M. B., Junaedi, A. T., Andi, & Suhardjo. (2021). The Effect of Entrepreneurship Characteristics, Business Capital, and Technological Sophistication on MSME Performance. Journal of Applied Business and Technology, 2(2), 109–117. https://doi.org/https://doi.org/10.35145/jabt.v2i2.74
Renaldo, N., Suharti, Andi, Putri, N. Y., & Cecilia. (2021). Accounting Information Systems Increase MSMEs Performance. Journal of Applied Business and Technology, 2(3), 261–270. https://doi.org/https://doi.org/10.35145/jabt.v2i2.74
Renaldo, N., Vomizon, R., Nuonnad, D. O., Okšav, N., & Hilas, R. A. (2023). The Use of ANOVA in Comparative Analysis of Exchange Rates in Indonesia. Nexus Synergy: A Business Perspective, 1(2), 100–108. http://firstcierapublisher.com/index.php/nexus/article/view/47
Rivai, V., & Sagala, J. (2015). Manajemen Sumber Daya Manusia. Untuk Perusahaan Dari Teori ke Praktik. Rajawali Press.
Santanu, T. R. (2022). Building Trust and Leadership: The Impact of Management Control Systems and Human Resource Competence on Financial Performance. Study at Perumda BPR Garut. Atestasi : Jurnal Ilmiah Akuntansi, 5(2), 844–860. https://doi.org/10.57178/atestasi.v5i2.911
Sekaran, U., & Bougie, R. (2016). Research Method for Business A Skill-Building Approach Seventh Edition (Seventh Ed). John Wiley & Sons. https://doi.org/10.1007/978-94-007-0753-5_102084
Sharma, A., Kosasih, E., Zhang, J., Brintrup, A., & Calinescu, A. (2022). Digital Twins: State of the art theory and practice, challenges, and open research questions. Journal of Industrial Information Integration, 30(November 2020), 100383. https://doi.org/10.1016/j.jii.2022.100383
Sudarno, Putri, N. Y., Renaldo, N., Hutahuruk, M. B., & Cecilia. (2022). Leveraging Information Technology for Enhanced Information Quality and Managerial Performance. Journal of Applied Business and Technology, 3(1), 102–114. https://doi.org/https://doi.org/10.35145/jabt.v3i1.97
Sunday, A. O., & Omotilewa, O. O. (2020). Public Trust and Financial Reporting Gap: Evidence From Underlined Ethical Issues. International Journal of Research Publications, 56(1), 98–112. https://doi.org/10.47119/ijrp100561720201315
Syafriadi, E., Sitepu, H. B., Andini, Y. P., Muda, I., & Kesuma, S. A. (2023). The impact of agency theory on organizational behavior: a systematic literature review of the latest research findings. Brazilian Journal of Development, 9(12), 31895–31911. https://doi.org/10.34117/bjdv9n12-090
Wulandari, W., & Rahmadani, I. (2024). The Application of Government Accounting Standards in Social Service Financial Reports. Jurnal Ilmiah Akuntansi Kesatuan, 12(1), 127–134. https://doi.org/10.37641/jiakes.v12i1.2453
Ziorklui, J. E. K., Ampofo, F. O., Nyonyoh, N., & Antwi, B. O. (2024). Effectiveness of internal controls mechanisms in preventing and detecting fraud. Finance & Accounting Research Journal, 6(7), 1259–1274. https://doi.org/10.51594/farj.v6i7.1322
Afdila, Frinaldi, A., & Magriasti, L. (2023). The Influence of Human Resource Competency, Utilization of Information Technology, and Organizational Commitment to Financial Management of The Regional Government of Kota Pariaman. Cosmogov: Journal of Government Science, 9(2), 200–215. https://doi.org/10.24198/cosmogov.v9i2.49413
Baah, C., Opoku-Agyeman, D., Acquah, I. S. K., Agyabeng-Mensah, Y., Afum, E., Faibil, D., & Abdoulaye, F. A. M. (2020). Examining the correlations between stakeholder pressures, green production practices, firm reputation, environmental and financial performance: Evidence from manufacturing SMEs. Sustainable Production and Consumption, 27, 100–114. https://doi.org/10.1016/j.spc.2020.10.015
Biyantoro, A. (2023). Local Government Financial Reports: Utilisation of Information Technology and Implementation of Government Accounting Standards. Jurnal Riset Akuntansi Kontemporer, 15(2), 241–251. https://doi.org/10.23969/jrak.v15i2.7616
Gazali, D., Panjaitan, H. P., & Chandra, T. (2022). Competence, Motivation, and Organizational Commitment on Job Satisfaction and Employee Performance at Bank Sinarmas Pekanbaru Riau Branch. Journal of Applied Business and Technology, 3(1), 26–39.
Goh, M., Wijaya, E., Junaedi, A. T., & Hocky, A. (2022). Customer Interest in Using Mandiri M-Banking: Can Ease of Use, Trust, Information Technology Readiness, and Social Factors Affect It? International Conference on Business Management and Accounting (ICOBIMA), 1(1), 143–153.
Habibi, Junaedi, A. T., Sudarno, Rahman, S., & Momin, M. M. (2022). Organizational Commitment, Job Satisfaction, and Locus of Control on Employee Turnover Intention and Performance at PT. Sekarbumi Alam Lestari. Journal of Applied Business and Technology, 3(2), 177–192.
Hadi, S., Renaldo, N., Purnama, I., Veronica, K., & Musa, S. (2023). The Impact of Decentralized Finance (DeFi) on Traditional Banking Systems: A Novel Approach. Proceeding of International Conference on Business Management and Accounting (ICOBIMA), 2(1), 295–299. https://doi.org/https://doi.org/10.35145/icobima.v2i1.4376
Imarni, Chandra, T., & Ginting, Y. M. (2022). Leadership, Discipline, and Organizational Culture on Job Satisfaction and Teacher Performance at State Junior High Schools in Bandar Petalangan District, Pelalawan Regency. Journal of Applied Business and Technology, 3(3), 272–286.
Junaedi, A. T., Renaldo, N., Yovita, I., Augustine, Y., & Veronica, K. (2023). Uncovering the Path to Successful Digital Performance through Digital Technology and Digital Culture as Moderation. Proceeding of International Conference on Business Management and Accounting (ICOBIMA), 2(1), 71–81. https://doi.org/https://doi.org/10.35145/icobima.v2i1.3959
Juprizon, Chandra, T., & Komardi, D. (2022). Work Environment, Compensation, and Supervision on Job Satisfaction and Teacher Performance at SMA Negeri 1 Kampar. Journal of Applied Business and Technology, 3(3), 235–250.
Kartika, V. N., & Ningsih, S. (2024). The Influence of Internal Control Systems, Implementation of Government Accounting Standards, and Human Resource Competence on Financial Report Quality. Jurnal Akuntansi Dan Auditing, 21(1), 24–38.
Maspaitella, M. R., & Mokodompit, M. P. (2022). The Anticedents of Local Government Financial Report Quality. Global Financial Accounting Journal, 06(01), 31–38. https://doi.org/10.4108/eai.1-10-2020.2305639
Muhrodin, M., Sudarno, S., Junaedi, A. T., Andi, A., & Putri, N. Y. (2024). The Effect of Motivation, Organizational Culture, Competency on Work Commitment and Performance of SD Teachers in Bengkalis District. Interconnection: An Economic Perspective Horizon, 1(4), 198–217. https://doi.org/https://doi.org/10.61230/interconnection.v1i4.71
Nafisah, A. N., Zulaihati, S., & Mardi, M. (2023). The Effect of Adversity Quotient and Family Environment on Entrepreneurial Intention on Faculty of Economics of Jakarta State University. Reflection: Education and Pedagogical Insights, 1(3), 89–98. https://firstcierapublisher.com/index.php/reflection/article/view/46
Napitupulu, B., Sudarno, & Junaedi, A. T. (2021). Budget Realization as a Management Control Tool for Company Performance at PT. Pelabuhan Indonesia I (Persero) Pekanbaru Branch. Journal of Applied Business and Technology, 2(3), 243–250.
Parindingan, F. Y., Haliah, H., & Nirwana, N. (2024). Evaluation of Transparency and Accountability of Regional Government Financial Reports in the Digitalization Era. Journal of Accounting and Finance Management, 5(5), 1051–1058.
Purwati, A. A., Hamzah, Z., Hamzah, M. L., & Deli, M. M. (2023). Digital and Entrepreneurial Literacy in Increasing Students’ Entrepreneurial Interest in the Technological Era. Proceeding of International Conference on Business Management and Accounting (ICOBIMA), 2(1), 34–43. https://doi.org/https://doi.org/10.35145/icobima.v2i1.3498
Putra, R., & Kudri, W. M. (2024). Fueling Success: Unleashing the Power of Motivation, Nurturing Work Environments, and Cultivating Organizational Culture for Peak Job Satisfaction and Performance. Luxury: Landscape of Business Administration, 2(1), 71–84. https://doi.org/https://doi.org/10.61230/luxury.v2i1.72
Renaldo, N., Andi, Putri, N. Y., & Yani, F. (2023). Development of Teaching Materials for a New Accounting Paradigm: From Concepts to Green Accounting Types. Proceeding of International Conference on Business Management and Accounting (ICOBIMA), 1(2), 443–451. https://doi.org/https://doi.org/10.35145/icobima.v1i2.3078
Renaldo, N., & Augustine, Y. (2022). The Effect of Green Supply Chain Management, Green Intellectual Capital, and Green Information System on Environmental Performance and Financial Performance. Archives of Business Research, 10(10), 53–77. https://doi.org/10.14738/abr.1010.13254
Renaldo, N., Sudarno, Hutahuruk, M. B., Junaedi, A. T., Andi, & Suhardjo. (2021). The Effect of Entrepreneurship Characteristics, Business Capital, and Technological Sophistication on MSME Performance. Journal of Applied Business and Technology, 2(2), 109–117. https://doi.org/https://doi.org/10.35145/jabt.v2i2.74
Renaldo, N., Suharti, Andi, Putri, N. Y., & Cecilia. (2021). Accounting Information Systems Increase MSMEs Performance. Journal of Applied Business and Technology, 2(3), 261–270. https://doi.org/https://doi.org/10.35145/jabt.v2i2.74
Renaldo, N., Vomizon, R., Nuonnad, D. O., Okšav, N., & Hilas, R. A. (2023). The Use of ANOVA in Comparative Analysis of Exchange Rates in Indonesia. Nexus Synergy: A Business Perspective, 1(2), 100–108. http://firstcierapublisher.com/index.php/nexus/article/view/47
Rivai, V., & Sagala, J. (2015). Manajemen Sumber Daya Manusia. Untuk Perusahaan Dari Teori ke Praktik. Rajawali Press.
Santanu, T. R. (2022). Building Trust and Leadership: The Impact of Management Control Systems and Human Resource Competence on Financial Performance. Study at Perumda BPR Garut. Atestasi : Jurnal Ilmiah Akuntansi, 5(2), 844–860. https://doi.org/10.57178/atestasi.v5i2.911
Sekaran, U., & Bougie, R. (2016). Research Method for Business A Skill-Building Approach Seventh Edition (Seventh Ed). John Wiley & Sons. https://doi.org/10.1007/978-94-007-0753-5_102084
Sharma, A., Kosasih, E., Zhang, J., Brintrup, A., & Calinescu, A. (2022). Digital Twins: State of the art theory and practice, challenges, and open research questions. Journal of Industrial Information Integration, 30(November 2020), 100383. https://doi.org/10.1016/j.jii.2022.100383
Sudarno, Putri, N. Y., Renaldo, N., Hutahuruk, M. B., & Cecilia. (2022). Leveraging Information Technology for Enhanced Information Quality and Managerial Performance. Journal of Applied Business and Technology, 3(1), 102–114. https://doi.org/https://doi.org/10.35145/jabt.v3i1.97
Sunday, A. O., & Omotilewa, O. O. (2020). Public Trust and Financial Reporting Gap: Evidence From Underlined Ethical Issues. International Journal of Research Publications, 56(1), 98–112. https://doi.org/10.47119/ijrp100561720201315
Syafriadi, E., Sitepu, H. B., Andini, Y. P., Muda, I., & Kesuma, S. A. (2023). The impact of agency theory on organizational behavior: a systematic literature review of the latest research findings. Brazilian Journal of Development, 9(12), 31895–31911. https://doi.org/10.34117/bjdv9n12-090
Wulandari, W., & Rahmadani, I. (2024). The Application of Government Accounting Standards in Social Service Financial Reports. Jurnal Ilmiah Akuntansi Kesatuan, 12(1), 127–134. https://doi.org/10.37641/jiakes.v12i1.2453
Ziorklui, J. E. K., Ampofo, F. O., Nyonyoh, N., & Antwi, B. O. (2024). Effectiveness of internal controls mechanisms in preventing and detecting fraud. Finance & Accounting Research Journal, 6(7), 1259–1274. https://doi.org/10.51594/farj.v6i7.1322
Published
2024-09-30
How to Cite
Yenni, E., Junaedi, A. T., & Wijaya, E. (2024). The Impact of Government Accounting Standards Implementation, Internal Control Systems, and Human Resource Competence on Regional Financial Report Quality. Journal of Applied Business and Technology, 5(3), 134-145. https://doi.org/10.35145/jabt.v5i3.182
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