Factors That Influence The Value Of Regional Government Financial Reporting Information In North Sumatra Province
DOI:
https://doi.org/10.65510/ijief.v3i1.298Keywords:
Internal Control System, Implementation of Government Acconting Standards, Asset Management, and Value of Financeial Repoting Information of Local Governments.Abstract
The North Sumatra Provincial Government has received an Unqualified Opinion (WTP) from the Supreme Audit Agency (BPK), but still found irregularities in financial management, weaknesses in the internal control system, and actions that do not comply with regulations. This study aims to determine the effect of the internal control system, the implementation of Government Accounting Standards (SAP), and regional asset management on the value of financial reporting information in the Regional Apparatus of North Sumatra Province. Quantitative methods were used with a purposive sampling technique resulting in 70 respondents. Data collection was carried out through questionnaires, and data analysis used multiple linear regression with the help of SPSS version 24. The results of the study indicate that the internal control system has a positive and significant effect on the value of financial reporting information, which means that effective internal control improves the quality of reporting information. The implementation of SAP also has a positive and significant effect, so that the consistent and correct application of accounting standards improves the quality of reporting. Regional asset management is proven to have a positive and significant effect on the value of reporting information, indicating that good asset management improves the accuracy and reliability of asset data in financial reports. Simultaneously, these three variables have a positive and significant effect on the value of regional financial reporting information. The findings underscore the importance of strengthening internal controls, enhancing SAP-based accounting capabilities, and integrated asset management to improve the quality of regional reporting information, even after receiving an unqualified opinion. Practical recommendations include improving internal procedures, training human resources, and strengthening oversight mechanisms.
