The Keys to Successful Financial Reporting through Internal Auditor and Financial Applications Quality (Survey on the accounting department of state-owned enterprises in Bandung City)

Lilis Puspitawati, Muhamad Iqbal Santosa

ICOBEST 2020 - New Era, the Trend towards Global Challenge after Covid-19 Pandemic - ISBN 978-623-95562-0-4


The success of a company's financial reporting can be seen from the company's ability to produce quality financial reports for use by various users in the strategic decision-making process. However, the results of an audit of the financial statements of the Audit Board of the Republic of Indonesia (BPK-RI) show that the financial reports of several State-Owned Enterprises (BUMN) in Indonesia are not qualified, so they cannot be assessed in strategic decisions. Financial reports that are not of high quality are suspected to be due to the unreliable accounting information system used by the company and the inadequate competence of internal auditors in carrying out their duties. Based on these conditions, this study aims to examine how much influence the quality of the accounting information system and internal auditors has on the quality of financial reports. This research uses descriptive verification method. The theoretical model to be tested by SEM-PLS, the minimum sample refers to the rule of tumb with simple simple sampling technique so that the number of samples in this study is 67 financial accounting units in BUMN in Bandung city. The results of this study prove that the Quality of Accounting Information Systems has a significant effect on the Quality of Financial Statements, and the Quality of Internal Auditors has a significant effect on the Quality of Financial Statements at BUMN companies in Bandung City.

Article PDF