Availability and quality of competent human resources in the financial sector

Oct 13, 2025 by wbrum.org 1 views

Introduction

The quality of financial statement information is a crucial aspect in government accountability and transparency. Accurate, relevant, and timely information enables stakeholders, such as the community and supervisory agencies, to assess the performance and management of government finances effectively. In this context, the Tebing Tinggi City Government's financial statements play a vital role in ensuring transparency and accountability in regional financial management.

This study aims to examine the factors that influence the quality of information on the financial statements of the Tebing Tinggi City Government, with a focus on the role of the government's internal control system as a moderating variable. The study seeks to identify the key factors that contribute to the quality of financial statement information and how the internal control system moderates these relationships.

Methodology

This study employs a causal associative method with a population of 76 SKPD heads and employees involved in financial management in Tebing Tinggi City Government. Data was collected through a questionnaire distributed to the entire population, which was then analyzed using multiple linear regression.

Research Variables

The independent variables in this study include:

Human Resources Capacity

Availability and quality of competent human resources in the financial sector: This variable assesses the availability and quality of human resources in the financial sector, including their competence and knowledge in financial management.
Utilization of Information Technology: This variable evaluates the application of information technology in the financial processing and reporting process, including the use of software and infrastructure.
Application of Government Accounting Standards: This variable assesses the obedience and application of government accounting standards in financial processing and reporting, including the use of accounting standards and regulations.
Internal Audit: This variable evaluates the internal audit functions in assessing and ensuring the reliability of the system and financial process, including the role of internal auditors in financial management.
Regional Fixed Assets Management: This variable assesses the good system and governance in management of regional fixed assets, including the management of assets and infrastructure.

The dependent variable is Quality of financial statement information, measured based on the criteria of accountability, relevance, reliability, and comparison.

Government Internal Control System as Moderating Variable

The government's internal control system plays a crucial role in moderating the relationship between independent variables and dependent variables. Effective internal control systems can improve the quality of financial statements information by ensuring structured, orderly, and accountable financial processes and financial systems.

Research Results

The results showed that simultaneously, all independent variables had a significant effect on the quality of information on the financial statements of Tebing Tinggi City Government. Partially, variable Utilization of Information Technology, Application of Government Accounting Standards, and Internal Audit has a positive and significant influence on the quality of financial statements information.

Meanwhile, Human Resources Capacity and Regional Fixed Assets Management Has a positive but not significant influence on the quality of financial statement information. This indicates that although these factors are important, it is not yet fully optimal in supporting the quality of financial statements information in the Tebing Tinggi City Government.

Conclusion

This study shows that the government's internal control system plays an important role in moderating the relationship between independent variables and the quality of financial statement information. A good internal control system can increase the effectiveness of independent variables and ultimately improve the quality of financial statements information.

Recommendation

Tebing Tinggi City Government needs to continue to improve the quality of human resources, especially in terms of competence and knowledge in the financial sector. In addition, it is necessary to optimize the use of information technology in the financial process, including the provision of infrastructure and training for employees. The application of government accounting standards and internal audits also needs to be strengthened to ensure the reliability and accountability of processes and financial systems.

Thus, it is expected that the quality of information on the financial statements of the Tebing Tinggi City Government can increase, thus supporting the transparency and accountability of regional financial management.

Implications of the Study

This study has several implications for the Tebing Tinggi City Government and other local governments. Firstly, it highlights the importance of a good internal control system in ensuring the quality of financial statements information. Secondly, it emphasizes the need for continuous improvement in human resources, information technology, and government accounting standards to support the quality of financial statements information.

Limitations of the Study

This study has several limitations. Firstly, the study only focuses on the Tebing Tinggi City Government and may not be generalizable to other local governments. Secondly, the study relies on self-reported data from SKPD heads and employees, which may be subject to biases and errors.

Future Research Directions

This study provides several avenues for future research. Firstly, it suggests the need for further research on the role of internal control systems in ensuring the quality of financial statements information. Secondly, it highlights the need for research on the impact of human resources, information technology, and government accounting standards on the quality of financial statements information.

Conclusion

In conclusion, this study provides valuable insights into the factors that influence the quality of information on the financial statements of the Tebing Tinggi City Government. The study highlights the importance of a good internal control system in moderating the relationship between independent variables and dependent variables. It also emphasizes the need for continuous improvement in human resources, information technology, and government accounting standards to support the quality of financial statements information.

Q: What is the significance of the quality of financial statement information in government accountability and transparency?

A: The quality of financial statement information is crucial in government accountability and transparency as it enables stakeholders, such as the community and supervisory agencies, to assess the performance and management of government finances effectively.

Q: What are the independent variables in this study?

A: The independent variables in this study include Human Resources Capacity, Utilization of Information Technology, Application of Government Accounting Standards, Internal Audit, and Regional Fixed Assets Management.

Q: What is the role of the government's internal control system in moderating the relationship between independent variables and dependent variables?

A: The government's internal control system plays a crucial role in moderating the relationship between independent variables and dependent variables. Effective internal control systems can improve the quality of financial statements information by ensuring structured, orderly, and accountable financial processes and financial systems.

Q: What are the results of the study?

A: The results showed that simultaneously, all independent variables had a significant effect on the quality of information on the financial statements of Tebing Tinggi City Government. Partially, variable Utilization of Information Technology, Application of Government Accounting Standards, and Internal Audit has a positive and significant influence on the quality of financial statements information.

Q: What are the implications of the study for the Tebing Tinggi City Government and other local governments?

A: The study has several implications for the Tebing Tinggi City Government and other local governments. Firstly, it highlights the importance of a good internal control system in ensuring the quality of financial statements information. Secondly, it emphasizes the need for continuous improvement in human resources, information technology, and government accounting standards to support the quality of financial statements information.

Q: What are the limitations of the study?

A: The study has several limitations. Firstly, the study only focuses on the Tebing Tinggi City Government and may not be generalizable to other local governments. Secondly, the study relies on self-reported data from SKPD heads and employees, which may be subject to biases and errors.

Q: What are the future research directions suggested by the study?

A: The study provides several avenues for future research. Firstly, it suggests the need for further research on the role of internal control systems in ensuring the quality of financial statements information. Secondly, it highlights the need for research on the impact of human resources, information technology, and government accounting standards on the quality of financial statements information.

Q: What are the recommendations for the Tebing Tinggi City Government based on the study?

A: The study recommends that the Tebing Tinggi City Government needs to continue to improve the quality of human resources, especially in terms of competence and knowledge in the financial sector. In addition, it is necessary to optimize the use of information technology in the financial process, including the provision of infrastructure and training for employees. The application of government accounting standards and internal audits also needs to be strengthened to ensure the reliability and accountability of processes and financial systems.

Q: What is the expected outcome of implementing the recommendations?

A: It is expected that the quality of information on the financial statements of the Tebing Tinggi City Government can increase, thus supporting the transparency and accountability of regional financial management.

Q: What are the benefits of improving the quality of financial statement information?

A: Improving the quality of financial statement information can lead to increased transparency and accountability in regional financial management, which can ultimately benefit the community and stakeholders.

Q: What are the challenges in implementing the recommendations?

A: The challenges in implementing the recommendations may include resistance to change, lack of resources, and inadequate infrastructure. However, with proper planning and implementation, these challenges can be overcome.

Q: What is the next step in implementing the recommendations?

A: The next step in implementing the recommendations is to develop a comprehensive plan that outlines the specific actions to be taken, the resources required, and the timeline for implementation. This plan should be reviewed and updated regularly to ensure that progress is being made towards achieving the desired outcomes.