THE EFFECT OF THE IMPLEMENTATION OF GOVERNMENT ACCOUNTING STANDARDS, ACCOUNTING INFORMATION SYSTEMS, AND INTERNAL CONTROL ON THE QUALITY OF FINANCIAL STATEMENTS AT THE REGIONAL FINANCIAL AND ASSET MANAGEMENT AGENCY
DOI:
https://doi.org/10.15575/aksy.v8i2.56380Keywords:
Accounting Information System, Financial Reporting Quality, Internal Control System, Local GovernmentAbstract
This study aims to examine the effect of implementing Government Accounting Standards (GAS), Accounting Information Systems (AIS), and Internal Control Systems (ICS) on the quality of financial statements at the Regional Financial and Asset Management Agency of Labuhanbatu Regency. The study employed a quantitative approach with an explanatory research design. The sample consisted of 35 employees selected using a purposive sampling technique. Data were collected through questionnaires and analyzed using multiple linear regression with IBM SPSS Statistics version 29. The findings reveal that the implementation of Government Accounting Standards, Accounting Information Systems, and Internal Control Systems has a positive and significant effect, both individually and simultaneously, on the quality of financial statements. Among the three independent variables, the Accounting Information System exerts the strongest influence, while collectively the three variables explain 49.0% of the variance in financial reporting quality. These findings indicate that improving the quality of local government financial statements requires integrating compliance with government accounting standards, optimizing accounting information systems, and strengthening internal control systems. This study contributes empirically to the public sector accounting literature. It provides practical insights for local governments in formulating policies to enhance the quality of Local Government Financial Statements through digital transformation and strengthened financial governance.
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