IJRR

International Journal of Research and Review

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Research Paper

Year: 2022 | Month: December | Volume: 9 | Issue: 12 | Pages: 491-505

DOI: https://doi.org/10.52403/ijrr.20221255

Analysis of the Factors That Influence Financial Reports in Government of North Sumatera with Implementation of the Government’s Internal Control System as Moderating Variable

Ihsan Ramadhan1, Idhar Yahya2, Azizul Kholis3

1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia

Corresponding Author: Ihsan Ramadhan

ABSTRACT

This study aims to determine the effect of implementation of government accounting standards (SAP), use of information technology, the role of internal audit, finance administration, and conflict of interest on the quality of local government financial reports in the Government of North Sumatera. In addition, this study also examines whether the implementation of the government’s internal control system (SPIP) can be used as a moderating variable in this research model or not. The type of research conducted is causal-associative research. The location of this research was the OPD in the Government of North Sumatera. The method of data collection in this study was documentation and observation techniques using a questionnaire. The data analysis technique used in this research is the PLS (partial least squares) technique using the analysis tool SmartPLS version 3.0 software, which is run on computer media. The results obtained in this study indicate that the implementation of SAP, the role of internal audit, finance administration, and conflicts of interest have a positive and significant impact on the quality of the local government's financial reports in the Government of North Sumatera. Meanwhile, the use of information technology has had no significant effect on the quality of local government financial reports in the Government of North Sumatera. Meanwhile, other results in this study indicate that the implementation of SPIP is only able to moderate the role of internal audit and finance administration of local government financial reports in the Government of North Sumatera.

Keywords: quality, report, financial, spip

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