The Influence Of Government Internal Control Systems, Human Resource Competencies, Application Of Regional Financial Accounting Systems And Organizational Commitment To The Quality Of The Financial Statements Of The North Labuhanbatu Regency With Regional Financial Supervision As Moderation Variables

Feb 27, 2025 by ADMIN 302 views

The Influence of Government Internal Control Systems, Human Resource Competencies, Application of Regional Financial Accounting Systems, and Organizational Commitment to the Quality of the Financial Statements of the North Labuhanbatu Regency with Regional Financial Supervision as Moderation Variables

Introduction

The quality of financial statements is a crucial aspect of effective regional financial management. In the context of North Labuhanbatu Regency, this study aims to investigate the effect of several factors, including government internal control systems, human resource competencies, the application of regional financial accounting systems, and organizational commitment, on the quality of regional financial statements. Additionally, this research considers regional financial supervision as a moderation variable.

Background

Regional financial management is a critical aspect of local government administration. The quality of financial statements is a key indicator of the effectiveness of regional financial management. However, the preparation of accurate and transparent financial reports is often hindered by various factors, including the lack of competent human resources, inadequate internal control systems, and the application of regional financial accounting systems. Furthermore, the role of regional financial supervision in moderating the relationship between these factors and the quality of financial statements is also an area of concern.

Methodology

This study involved 60 respondents from the Regional Work Unit (SKPD) of North Labuhanbatu Regency. The sampling method used was a saturated sampling technique, where the whole population was used as a sample. Data obtained from the questionnaire were then analyzed using multiple linear regression methods, F tests, T tests, and residual tests.

Results

The results of the analysis showed that simultaneously, the variables of the government's internal control system, human resource competencies, the application of the regional financial accounting system, and organizational commitment had a significant influence on the quality of the financial statements of the North Labuhanbatu Regency. However, when analyzed partially, the results were different. Only the competency variable of human resources had a significant influence on the quality of financial statements, while other variables did not show significant impacts.

Interestingly, regional financial supervision apparently did not function as a moderation variable. This shows that although the supervision is present, it is unable to strengthen or weaken the relationship between independent variables and the quality of financial statements.

Discussion

The results of this study have several implications for regional financial management. First, the competence of human resources is very crucial in determining the quality of financial statements. That is, local governments need to focus on training and improvement of competencies for its employees in order to be able to prepare accurate and transparent financial reports. Second, although the internal control system and the application of the regional financial accounting system have been implemented, this is not enough if it is not balanced with an increase in HR competencies.

Conclusion

Overall, the results of this study confirm the importance of the role of competent human resources in regional finance management. In the future, there needs to be more attention from the government to invest in human resource development and increase the effectiveness of existing systems so that regional financial statements can reflect the actual situation. This will contribute to increasing public confidence in the government and accountability in the management of public finances.

Recommendations

Based on the findings of this study, the following recommendations are made:

Investment in Human Resource Development: Local governments need to invest in human resource development to improve the competencies of their employees.
Balanced Implementation of Internal Control Systems and Regional Financial Accounting Systems: The implementation of internal control systems and regional financial accounting systems should be balanced with an increase in HR competencies.
Effective Regional Financial Supervision: Regional financial supervision should be effective in moderating the relationship between independent variables and the quality of financial statements.
Increased Public Confidence: The government should increase public confidence in the government and accountability in the management of public finances by ensuring that regional financial statements reflect the actual situation.

Limitations

This study has several limitations. First, the sample size was relatively small, which may limit the generalizability of the findings. Second, the study only considered a few factors that may influence the quality of financial statements. Future studies should consider a broader range of factors to provide a more comprehensive understanding of the issue.

Future Research Directions

Future research should focus on the following areas:

Investigating the Effect of Other Factors: Future studies should investigate the effect of other factors, such as the role of technology in regional financial management, on the quality of financial statements.
Examining the Impact of Regional Financial Supervision: Future studies should examine the impact of regional financial supervision on the quality of financial statements.
Developing a Comprehensive Framework: Future studies should develop a comprehensive framework that considers a broader range of factors that may influence the quality of financial statements.

Conclusion

In conclusion, this study has provided insights into the influence of government internal control systems, human resource competencies, the application of regional financial accounting systems, and organizational commitment on the quality of the financial statements of the North Labuhanbatu Regency with regional financial supervision as moderation variables. The findings of this study have several implications for regional financial management and provide a basis for future research in this area.
Frequently Asked Questions (FAQs) about the Influence of Government Internal Control Systems, Human Resource Competencies, Application of Regional Financial Accounting Systems, and Organizational Commitment on the Quality of the Financial Statements of the North Labuhanbatu Regency

Q: What is the significance of this study?

A: This study is significant because it investigates the influence of government internal control systems, human resource competencies, the application of regional financial accounting systems, and organizational commitment on the quality of the financial statements of the North Labuhanbatu Regency. The findings of this study can provide insights into the factors that affect the quality of financial statements and can inform policy decisions to improve regional financial management.

Q: What are the key findings of this study?

A: The key findings of this study are that:

Simultaneously, the variables of the government's internal control system, human resource competencies, the application of the regional financial accounting system, and organizational commitment have a significant influence on the quality of the financial statements of the North Labuhanbatu Regency.
Partially, only the competency variable of human resources has a significant influence on the quality of financial statements, while other variables do not show significant impacts.
Regional financial supervision apparently does not function as a moderation variable.

Q: What are the implications of this study?

A: The implications of this study are that:

The competence of human resources is very crucial in determining the quality of financial statements.
Although the internal control system and the application of the regional financial accounting system have been implemented, this is not enough if it is not balanced with an increase in HR competencies.
Regional financial supervision should be effective in moderating the relationship between independent variables and the quality of financial statements.

Q: What are the recommendations of this study?

A: The recommendations of this study are that:

Local governments should invest in human resource development to improve the competencies of their employees.
The implementation of internal control systems and regional financial accounting systems should be balanced with an increase in HR competencies.
Regional financial supervision should be effective in moderating the relationship between independent variables and the quality of financial statements.
The government should increase public confidence in the government and accountability in the management of public finances by ensuring that regional financial statements reflect the actual situation.

Q: What are the limitations of this study?

A: The limitations of this study are that:

The sample size was relatively small, which may limit the generalizability of the findings.
The study only considered a few factors that may influence the quality of financial statements. Future studies should consider a broader range of factors to provide a more comprehensive understanding of the issue.

Q: What are the future research directions?

A: The future research directions are that:

Future studies should investigate the effect of other factors, such as the role of technology in regional financial management, on the quality of financial statements.
Future studies should examine the impact of regional financial supervision on the quality of financial statements.
Future studies should develop a comprehensive framework that considers a broader range of factors that may influence the quality of financial statements.

Q: What are the practical implications of this study?

A: The practical implications of this study are that:

Local governments should prioritize human resource development to improve the competencies of their employees.
The implementation of internal control systems and regional financial accounting systems should be balanced with an increase in HR competencies.
Regional financial supervision should be effective in moderating the relationship between independent variables and the quality of financial statements.
The government should increase public confidence in the government and accountability in the management of public finances by ensuring that regional financial statements reflect the actual situation.

Q: What are the policy implications of this study?

A: The policy implications of this study are that:

Policy makers should prioritize human resource development to improve the competencies of government employees.
Policy makers should ensure that the implementation of internal control systems and regional financial accounting systems is balanced with an increase in HR competencies.
Policy makers should ensure that regional financial supervision is effective in moderating the relationship between independent variables and the quality of financial statements.
Policy makers should increase public confidence in the government and accountability in the management of public finances by ensuring that regional financial statements reflect the actual situation.