Factors Affecting the Quality of Local Government Financial Reports in Cimahi City
- Authors
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Elvira Zeyn
Department of Accounting, Faculty of Economics and Business, Pasundan University, Indonesia
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Arifah Ashariya
Department of Accounting, Faculty of Economics and Business, Pasundan University, Indonesia
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- Keywords:
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- Abstract
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Although Cimahi City has received thirteen consecutive Unqualified Opinions (WTP) from the Audit Board of Indonesia (BPK RI) for its local government financial reports, BPK audits have still identified internal-control weaknesses and compliance issues, indicating that a WTP opinion alone does not fully capture financial reporting quality. This study examines the effect of regional financial management accountability, human resource competence, and legislative compliance on the quality of local government financial reports at Cimahi City Regional Apparatus. A quantitative approach with a descriptive and verificative method was used. Primary data were collected through questionnaires distributed to 90 respondents (heads/secretaries, treasurers, and financial staff) selected using purposive sampling. Data were analyzed using validity and reliability tests, classical assumption tests, and multiple linear regression analysis, with hypothesis testing conducted through t-tests and F-tests using IBM SPSS Statistics. The results show that accountability, human resource competence, and legislative compliance each have a significant positive effect on financial report quality, contributing 37.7%, 13.2%, and 35.9% respectively, and simultaneously explain 86.7% of the variance in financial report quality. These findings confirm that strengthening accountability, competence, and regulatory compliance can substantially improve reporting quality. This study contributes to agency, human capital, and compliance theory in the public-sector accounting context and offers practical implications for local governments seeking to improve financial reporting quality.
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