ANALYSIS OF FACTORS AFFECTING THE QUALITY OF LOCAL GOVERNMENT FINANCIAL STATEMENTS IN SUMBAWA DISTRICT WITH INTERNAL CONTROL SYSTEM AS MODERATING VARIABLE

Abstract

This study is motivated by an increase in the opinion of the BPK examination results on the Local Government Financial Statements (LKPD) from 2017 to 2021. However, in LKPD in 2022 there was a decrease in opinion, one of which was sumbawa district which received a WDP opinion after being able to maintain WTP opinion for 12 years. The purpose of the study was to determine the effect of human resource competence and information technology utilization on the quality of Sumbawa Regency government financial reports with the internal control system as a moderating variable. This study uses quantitative methods using primary data in the form of questionnaires. The population in this study were all financial staff in all SKPDs of Sumbawa Regency totaling 60 people.  In this study the authors took a sample using purposive sampling technique in 30 SKPDs with the criteria used for several considerations. Hypothesis testing in this study used SEM-PLS analysis through the SmartPLS 4.0 application. The results of this study indicate that Human Resource Competence and Information Technology Utilization have a positive effect on the Quality of Local Government Financial Statements. The Information Control System is unable to strengthen the effect of Human Resources Competence on the Quality of Local Government Financial Reports, while the Information Control System is able to strengthen the effect of Information Technology Utilization on the Quality of Local Government Financial Reports.