Improving Human Resource Competence

Oct 13, 2025 by wbrum.org 56 views

Factors Affecting the Quality of Labuhanbatu Regency Regional Government Financial Statements

The quality of financial statements is a crucial aspect of any organization, including local governments. In the context of Labuhanbatu Regency Regional Government, the quality of financial statements is essential for ensuring transparency, accountability, and effective decision-making. This study aims to identify the factors that affect the quality of the financial statements of the Labuhanbatu Regency Government.

Background and Significance

The quality of financial statements is influenced by various factors, including human resource competence, the application of Government Accounting Standards (SAP), the application of the Regional Financial Accounting System (SAKD), internal control systems, and accrual-based accounting understanding. The significance of this study lies in its ability to provide insights into the factors that affect the quality of financial statements, which can inform policy decisions and improve the overall performance of the Labuhanbatu Regency Regional Government.

Methodology

This study involved 120 respondents, consisting of Commitment Making Officials (PPK)-Regional Apparatus Work Unit (SKPD), Treasurer of Expenditures, and Head of Service. The data was collected through primary data analysis (questionnaire) using multiple linear regression methods, F tests, and t tests.

Findings

The study found that human resource competence has a positive and significant influence on the quality of local government financial statements. This suggests that improving the competence of human resources, such as through training and development, is a crucial step in improving the quality of financial statements.

In addition, the study found that the application of SAP has an insignificant positive influence, the application of SAKD has a positive and significant influence, and internal control systems have a positive influence that is not significant on the quality of financial statements. The study also shows that accrual-based accounting understanding does not have a significant positive influence on the quality of local government financial statements.

Deeper Analysis

The findings of this study provide important insights into the factors that affect the quality of financial statements. The results show that human resource competence is the most dominant factor in improving the quality of financial statements. This indicates that improving the quality of human resources is a crucial step in improving the quality of financial statements.

The study also highlights the limited effect of SAP on improving the quality of financial statements. This may be caused by factors such as lack of understanding of the application of optimal SAP or lack of adequate resources to support the full application of SAP.

The role of SAKD in increasing accountability and financial transparency of local governments is also highlighted. The study shows that SAKD is an important framework in increasing accountability and financial transparency of local governments.

Recommendations

Based on the research findings, the following recommendations are made to improve the quality of the financial statements of the Labuhanbatu Regency Government:

Improving Human Resource Competence: Local governments need to focus on increasing the competence of human resources involved in the accounting process. This can be done through structured training and development programs, as well as by providing opportunities for human resources to participate in professional certification in the field of accounting.
Optimizing the application of SAP: Local government needs to review the application of SAP and ensure that SAP is applied optimally. This can be done by analyzing needs, identifying potential obstacles, and formulating the right strategy to overcome the obstacles encountered.
Increasing the effectiveness of the Internal Control System: Local governments need to evaluate existing internal control systems and find ways to increase their effectiveness. This can be done by conducting regular internal audits, developing more effective reporting and monitoring mechanisms, as well as establishing good cooperation with law enforcement officials.
Increasing accrual-based accounting understanding: Local governments need to increase understanding of accrual-based accounting, both at the level of management and at the implementing level. This can be done by conducting training, making guidelines that are easy to understand, and facilitating access to relevant sources of information.

Conclusion

In conclusion, this study provides important insights into the factors that affect the quality of financial statements of the Labuhanbatu Regency Regional Government. The findings highlight the importance of human resource competence, the application of SAKD, and the need to optimize the application of SAP and internal control systems. By implementing the recommendations made in this study, it is hoped that the quality of the Labuhanbatu Regency Regional Government Financial Statements can continue to be improved, so as to increase transparency and accountability in regional financial management, and facilitate appropriate decision-making.

Limitations and Future Research Directions

This study has several limitations, including the use of a small sample size and the reliance on self-reported data. Future research directions include conducting a larger-scale study with a more diverse sample, as well as using objective measures of financial statement quality.

References

[List of references cited in the study]

Appendix

[Appendix containing additional information, such as questionnaires, data analysis, and tables]

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Q&A: Factors Affecting the Quality of Labuhanbatu Regency Regional Government Financial Statements

In our previous article, we discussed the factors that affect the quality of financial statements of the Labuhanbatu Regency Regional Government. In this article, we will answer some frequently asked questions (FAQs) related to the study.

Q: What is the significance of this study?

A: This study is significant because it provides insights into the factors that affect the quality of financial statements of the Labuhanbatu Regency Regional Government. The findings of this study can inform policy decisions and improve the overall performance of the Labuhanbatu Regency Regional Government.

Q: What are the main factors that affect the quality of financial statements?

A: The main factors that affect the quality of financial statements are human resource competence, the application of Government Accounting Standards (SAP), the application of the Regional Financial Accounting System (SAKD), internal control systems, and accrual-based accounting understanding.

Q: Why is human resource competence important?

A: Human resource competence is important because it affects the quality of financial statements. The study found that human resource competence has a positive and significant influence on the quality of local government financial statements.

Q: What is the role of SAP in improving the quality of financial statements?

A: SAP has an insignificant positive influence on the quality of financial statements. This may be caused by factors such as lack of understanding of the application of optimal SAP or lack of adequate resources to support the full application of SAP.

Q: What is the role of SAKD in improving the quality of financial statements?

A: SAKD has a positive and significant influence on the quality of financial statements. This shows that SAKD is an important framework in increasing accountability and financial transparency of local governments.

Q: Why is internal control system important?

A: Internal control system is important because it affects the quality of financial statements. Although it has a positive influence, the internal control system is not significant in improving the quality of financial statements.

Q: What is accrual-based accounting understanding?

A: Accrual-based accounting understanding refers to the ability of local governments to understand and apply accrual-based accounting principles. The study found that accrual-based accounting understanding does not have a significant positive influence on the quality of local government financial statements.

Q: What are the recommendations made in this study?

A: The recommendations made in this study are:

Improving human resource competence
Optimizing the application of SAP
Increasing the effectiveness of the internal control system
Increasing accrual-based accounting understanding

Q: How can local governments implement these recommendations?

A: Local governments can implement these recommendations by:

Providing training and development programs for human resources
Reviewing and optimizing the application of SAP
Conducting regular internal audits and developing more effective reporting and monitoring mechanisms
Increasing understanding of accrual-based accounting principles

Q: What are the limitations of this study?

A: The limitations of this study include the use of a small sample size and the reliance on self-reported data.

Q: What are the future research directions?

A: Future research directions include conducting a larger-scale study with a more diverse sample, as well as using objective measures of financial statement quality.

Conclusion

In conclusion, this Q&A article provides answers to frequently asked questions related to the study on factors affecting the quality of financial statements of the Labuhanbatu Regency Regional Government. The findings of this study can inform policy decisions and improve the overall performance of the Labuhanbatu Regency Regional Government.