The Effect of Effectiveness of ERP Use, Quality of Internal Audit to Transparency of Financial Report with Management Support as Moderation Variable

Abstract

There are only few companies implementing the financial reports’ transparency in Indonesia. Those are only found in several government agencies, state- owned companies, but still few numbers of public companies (limited) and even non-public companies. From the results of this study, the researchers concluded that the use of Enterprise Resource Planning (ERP) effectively is one way of implementing Accounting Information Systems within the company that can help internal auditors work effectively and create transparent financial statements as well. This study discusses the Effect between the usage effectiveness of Enterprise Resource Planning (ERP), management support to the transparency of financial statements. The calculation method is using Partial Least Square 3.0 (PLS). This Research calculates Average Variance Extracted (AVE), Composite Reliability (CR, Cronbach Alpha, R Square, and Hypothesis Test) .The data collection methods in this paper use questionnaire with Likert scale. The sample in this research is 441. From the Result of hypothesis test, it describes the effect of effectiveness of the use of ERP to financial report transparency 27,8%, the effect of audit internal to financial report transparency 40,9% and the effect of management support to financial report transparency 14,9%. Management support variable has significant effect to the relationship between ERP effectivity and financial report transparency 9,1%. Management support variable has significant effect to the relationship between audit internal quality and financial report transparency 3%.

Keywords: Enterprise Resource Planning, ERP, internal audit, financial report transparency, management support, PLS 3.0