The Effect of Competence Government Apparatus and Internal Audit Role on the Local

Abstract

The purpose of this study is to confirm and prove the influence of the quality of government apparatus and the role of internal audit on the quality of financial statements both directly and mediated by the application of accrual-based government accounting standards. The population in this study were all SKPD in the South Tangerang City Government. The sample used in this study was 165 respondents using the purposive sampling method. Data instrument used in the form of questionnaire questionnaire with measurement of Likert scale model. The hypothesis testing uses Structural Equation Modeling (SEM) analysis with the help of Amos 22 software with a significance level of 0.05 (5%). The results of hypothesis testing reveal that the quality of government apparatus has a significant positive effect on the quality of financial statements of 0.537 with a CR value of 2.514> 1.967 and a probability value (P) of 0.000 (***).The influence of the role of internal audit on the quality of financial statements has a significant positive effect of 0.482 with a value of C.R. 3,555> 1,967 and probability value (P) of 0,000 (***) and the effect of the accrual-based SAP application on the quality of financial statements has a significant positive effect of 0.556 with a value of C.R 2.747> 1.967 and a probability value (P) of 0.001 <0.050. and the effect of accrual-based SAP implementation on the quality of financial statements has a significant positive effect of 0.556 with a value of C.R 2.747> 1.967 and a probability value (P) of 0.001 <0.050. while the indirect effect or mediated by the accrual-based SAP implementation, each of them has a significant positive value with a significant value. The effect of the variable quality of the government apparatus on the quality of financial reports shows the total effect of direct effect (0.850> 0.537) and significant influence of role variables Internal audit of the quality of financial statements shows the value of the total influence> direct effect (0.744> 0.482). with these results, both the influence of the quality of government apparatus and the role of internal audit on the quality of financial statements will be better if mediated by the application of accrual-based SAP.