Determinants for Quality Financial Reporting in Public Sector

Abstract

This research aims to find out the empirical evidence of determinants for financial reporting quality with some variables such as an internal accountant competence, information technology utilization, internal accounting control, role of internal auditor, and case study in public sector particularly the government of Hulu Sungai Selatan regency, South Kalimantan, Indonesia. The principles of organizing the regional finance are accountability and reliability. Accountability means that it is accountable towards public as the user of financial report so that the local government requires a decent quality of financial report.  The research applied associative causality approach. The methods of the research used a survey and questioner for the data collection. The government of Hulu Sungai Selatan regency, that are responsible in making financial report that include accounting entity and financial reporting entity of the local government, are the object of unit analysis. The analysis of the data applies Likert scale in multiple regression. The result of the research attests that variable such as the competence of internal accountant, utilization of information and technology, control of internal accounting, and role of internal auditor significantly have positive correlation to the quality of financial report. It indicates that the government of Hulu Sungai Selatan regency should observe and develop those four variables in order to improve the quality of financial report.