The Influence of the Implementation of the Regional Financial Accounting System and the Role of the Internal Auditor on the Quality of Financial Reports with the Internal Control System as a Moderating Variable

Abstract

This article aims to examine the effect of applying the regional financial accounting system and the role of internal auditors on the quality of financial reports. In this case, the internal control system is used as a moderating variable. This article also aims to determine the effect of the independent variable on the dependent variable to determine the effect on the dependent variable. In the moderating variable, there are several factors that will strengthen or weaken the influence of the independent on the dependent variable. In this study, the test was carried out using moderated regression analysis using 75 respondents in 25 Regional Office Organizations and Jambi Provincial Agencies as samples. This article uses differential semantics as a measurement scale, with an interval scale score of 1 to 7 points. The type of information used in this examination is essential information, including quantitative data. From this study, it was found that there was a lack of risk assessment carried out, such as leaders who did not carry out risk evaluations that were completed, for example, leaders who did not check bookkeeping records, cash and products. There was no adequate separation of duties from the control environment, as evidenced by getting a low score. The interaction variable between the regional financial accounting accounting system and the control system is calculated to be -1.224 and a significance value of 0.226 > 0.05 (α = 5%) H4a is rejected. The interaction variable between the role of internal auditors and the internal control system has a t count of 1.461 and a significance value of 0.149 > 0.05 (α = 5%) H4b is rejected.

Keywords:regional financial accounting system, the role of internal auditors, quality of financial reports, internal control system

DOI: 10.7176/RJFA/13-16-05

Publication date:August 31^st 2022