Analysis Of The Factors Affecting The Quality Of Government Financial Statements In Public Institution (Instituisaun Publiku I.P) Timor Leste

Abstract

This study aims to analyze and explain the effect of understanding IPSAS standards on the quality of financial reports; the influence of the use of information technology on the quality of financial reports; the influence of human resource competence on the quality of financial reports; and the influence of the internal control system on the quality of financial reports. The total sample population of this study is 99. These were drawn from 34 Timorese Public Institutes with a saturated sample, of which only 88 answers were collected with a respondent rate of 89%. The methods of data analysis were multiple linear regression tests, which previously tested the validity and reliability. The findings of this study are that there is a positive influence on the understanding of IPSAS standards, the use of information technology, and the internal control system on the quality of financial reports. Whereas the competence of human resources does not affect the quality of financial reports because staff from each institution that prepares financial reports has received special training from the Ministry of Finance. However, looking at the other factors, there is still a significant influence on the quality of financial reports because it is possible that the staff who works on the financial reports does not have a financial or accounting educational background, thus making it difficult for them to prepare financial reports even though they have received training in preparing financial reports.