Finance

Accounting

Sociology

Business

Accounting information system

Resource dependence theory

Audit

Government (linguistics)

Population

Corporate governance

Human resources

Agency (philosophy)

Epistemology

Demography

Philosophy

Principal (computer security)

Political science

Management

Internal control

Economics

Principal–agent problem

Control (management)

Quality (philosophy)

Local government

Computer science

Linguistics

Public administration

Computer security

Journal of Asian Finance Economics and Business

This study seeks to determine the effect of the application of accounting information system (AIS), internal control system, and human resource (HR) competency on the quality of local government financial statements (FS). This study uses agency theory and compliance theory. Agency theory is used to explain that there is a link between the society as the principal and the government as the agent. Compliance theory is a theory, which states that every agency is obliged to comply with regulations because the law-drafting authority has the right to dictate behavior. The population in this study were employees of the financial division of local government organizations in one of the districts in Central Java, Indonesia. The total samples in this study was 106 respondents. The data used are primary data taken from distributing questionnaires to respondents. The method of analysis used to test the hypothesis was multiple linear regression analysis. The results of hypothesis testing indicate that HR competency has an effect on the quality of FS; however, the application of AIS and internal control system has no effect on the quality of FS. The implication of this research underlines the importance of HR competency to improve the quality of local government FS.

Accounting Information System, Internal Control System, Human Resource Competency and Quality of Local Government Financial Statements in Indonesia