Improved Regional Financial Reporting Through Effective Information Technology and Regional Financial Accounting Systems

Abstract

The quality of local government financial reports is highly dependent on the information technology (IT) and financial accounting systems used to process transactions and generate financial reports. This research aims to analyze the quality of regional financial reporting, which is determined by the success of IT and financial accounting systems operating in the South Sulawesi region. This study’s respondents are heads of regional apparatus organizations functioning as budget users and heads of accounting and finance departments, who process regional government financial reports. This research uses a survey method, and the data collected are processed using the PLS application. The results of data processing reveal that Information Quality, Service Quality, and Control Environment influence the Quality of Financial Reports, while System Quality, Risk Assessment, Control Activities, Monitoring, and Information and Communication do not have a significant influence on the Quality of Financial Reports. Furthermore, this research demonstrates that the quality of regional financial reporting using SIPD provides quality information and services within the regulated regional government controlled environment.