The Effect of Budget Oversight, Organizational Commitment, and Human Resource Quality on the Quality of Government Financial Reporting with the Government Internal Control System as an Intervening Variable

Miftachul Akram; Islahuddin Islahuddin; Fazli Syam BZ

doi:10.55927/ministal.v3i3.11247

Authors

Miftachul Akram Faculty of Economics and Business, Universitas Syiah Kuala
Islahuddin Islahuddin Faculty of Economics and Business, Universitas Syiah Kuala
Fazli Syam BZ Faculty of Economics and Business, Universitas Syiah Kuala

DOI:

https://doi.org/10.55927/ministal.v3i3.11247

Keywords:

Budget Oversight, Organizational Commitment, Human Resource Quality, Internal Control System, Financial Reporting Quality

Abstract

This research examines the impact of budget oversight, organizational commitment, and human resource quality on the quality of government financial reporting, with internal control systems serving as a mediating variable. Data were collected from municipal governments using quantitative methods. The analysis employs direct and indirect effect tests, including Sobel and Bootstrap methods, to assess mediation. Results reveal that budget oversight, organizational commitment, and human resource quality positively impact financial reporting quality directly and through the internal control system. These findings underscore the need to enhance budget oversight, organizational commitment, and human resource quality to improve government financial accountability and transparency.

Downloads

Download data is not yet available.

References

Akhmad, I., Mustanir, A., & Ramadhan, M. R. (2017). The effect of information technology utilization and regional financial supervision on the quality of enrekang district financial reports. Social Politics & Economics, 7(1), 89-103.

August, N., & Razak, J. (2017). The Effect of Human Resources Competence on the Government Implementation of Internal Control System, Accrual Based Accounting Standards, and the Quality of Local Government's Financial Report (an Empirical study on Local Government of Konawe Regency). Journal of Economic Development Progress, 2(2), 15-40.

Ayem, S., & Amahala, R. (2023). The effect of information technology utilization, accounting information systems, and organizational commitment on the quality of financial reports (Case study on Yogyakarta City Local Government). Journal of Applied Management and Finance, Vol. 12, No. 1, March 2023.

Barney, J. B., Ketchen, D. J., & Wright, M. (2011). The future of resource-based theory: Revitalization or decline? Journal of Management, 37(5), 1299-1315. https://doi.org/10.1177/0149206310391805.

Carvalho, A. O., Rodrigues, L. L., & Branco, M. C. (2017). Factors influencing voluntary disclosure in the annual reports of Portuguese foundations, 28(5), 2278-2311.

Dasmaran, V., & Yulaeli, T. (2018). The effect of local government accounting systems on the quality of regional financial reports at the regional asset financial management agency (BPKAD) Pandeglang. Maranatha Journal of Accounting, 10(2), 170-178. https://doi.org/10.28932/jam.v10i2.1082

Donaldson, L., & Davis, J. H. (1991). Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns. Australian Journal of Management, 16(1), 49-64. https://doi.org/10.1177/031289629101600103.

Eriani, V., Zamzami, & Diah, E. (2018). The effect of employee quality and internal control systems on the quality of financial reports of the Batang Hari Regency Regional Government. UNJA Journal of Accounting and Finance, Vol. 3, No. 6, 2018.

Government Regulation No. 71 of 2010 concerning Government Accounting Standards.

Government Regulation Number 60 of 2008 concerning the Government Internal Control System.

Hale, I., Bria, E., Nahak, L., Bouk, O., & Sutal, D. (2024). The effect of human resource competencies, the application of government accounting standards on the quality of government financial reports with an internal control system in the Kupang City SKPD. Journal of Economics and Business, 3(1), 1-14.

Han, H. K. W., & Maharani, N. K. (2022). The effect of utilization of accounting information system and quality of human resources on the quality of financial reports. Al-Qalam: Scientific Journal of Religion and Society, Vol. 16, No. 2, March-April 2022.

Inayatulloh, M. R., & Siswantoro, D. (2019). The effect of budget management quality and internal audit to financial statement quality in the ministries and agencies. Journal of Accounting and Business, 19(2), 218-228.

Law Number 17 Year 2003 on State Finance. (2003).

Mahalingam, S., & Suresh, M. (2018). The Impact of Organizational Commitment on Employee Loyalty in IT Industry with Reference to Coimbatore City. International Journal of Research in Engineering, Science, and Management. Vol. 1., Issue-5, May 2018.

Mariani, N. P., Yuniasih, N. W., & Yuliatari, N. P. Y. (2022). Th influence of supervisory board function, human resources quality, and the utilization of information technology on the quality of financial reports in Denpasar Village credit institutions. Management and applied social studies review, Vol. 1., No. 1, 2023, pp. 13-20.

Murni, F., Indrawati, N., & Desmiyawati, D. The Effect of Human Resources Capacity, Use of Information Technology, and Internal Control Systems on Reliability and Timeliness of Financial Statements Submission (Empirical Evidence from Pekanbaru City Regional Organization). International Journal of Economic, Business & Applications, 5(1), 53-64.

Pangestu, M. E., Wafirotin, K. Z., & Hartono, A. (2019). The influence of the quality of human resources, internal control system, and utilization of information technology on the quality of financial reports in the regional work unit (SKPD) of Ponorogo Regency. ISOQUANT: Journal of Economics, Management, and Accounting, 3(2), 108-119.

Riskia, F., Mansur, F., & Erwati, M. The Effect of Human Resource Competence on the Quality of Regional Financial Reports of the Jambi Provincial Government through the Utilization of Information Technology as an Intervening Variable.

Sari, A. & Widiatmoko, J. (2023). The Role of the Internal Control System as a Mediator of the Effect of Organizational Commitment and Quality of Human Resources on the Quality of Local Government Financial Statements. Economist: Journal of Economics and Business, Vol. 7, No. 2, 2023 (September, 826-837).

Suarmika, I. G. L., & Suputra, I. D. G. D. (2016). The Ability of Organizational Commitment and Internal Control System to Moderate the Effect of Human Resources Capacity and SIKD Implementation on the Quality of LKPD of KarangAsem Regency. E-Journal of Economics and Business, 5.9, 2921-2950.

Sudjono, A. C., & Setiawan, A. (2022). The role of supervision on internal control disclosure. International Conference of Business, Accounting and Economics, August 10-11, 2022.

Suliyantini, L., & Kusmuriyanto, K. (2017). The Effect of Human Resources Competency and Accrual Based Government Accounting Standard Implementation on the Quality of Local Government Financial Statement with the Implementation of Internal Control System as a Mediating Variable. Accounting Analysis Journal, 6(1), 19-26.

Suludin, Ibrahim, R., & Saputra, M. (2022). The effect of the quality of human resources, financial management accountability, and accounting information systems on the quality of financial reports in the Simeuleu District. International Journal of Current Science Research and Review, Vol. 5, Issue 12 December 2022.

Weli, Sjarief, J., & Madyakusumawati, S. (2020). Supervision mechanism and quality of the internal control system disclosure. Accounting, 6(2020), 1419-1428.

Yaqin, A., & Jatmiko, B. (2019). Contribution of Human Resource Competencies, Government Accounting Standards, and Government Internal Control Systems to the Quality of Government Financial Statements: Case Study at the Regional Work Unit of Biak Numfor Regency. Indonesian Accounting and Business Review, 2(1), 1-10.

Zulfikar, R., Rosiana, R., & Nariah, R. A. F. (2015). Corporate governance and internal control disclosure. Journal of Accounting, 1(2), 1-20.