QUALITY OF WORK IN UNIT FINANCIAL STATEMENTS OF LOCAL GOVERNMENT: FACTORS’ AFFECT AND THE IMPLICATIONS OF FINANCIAL ACCOUNTABILITY (Studies on the Local Government Unit in the District of Central Lombok)

Abstract

Based on this research, low quality of financial statement presentation, especially local government level accounting entity. Presentation of the financial statements of the Local Government Unit was not fully in appropriate with the Governmental Accounting Standards and Accounting Policies so that affect the accuracy of the information presented in the financial statements. Inaccurate financial reports has negative impact to users in policy making. his study aims to test empirically the factors that affect the quality of the financial statements and the problems was faced by local government unit (SKPD) in preparing the financial statements and the implications for the financial accountability. The population in this research were 285 respondents. The sample is determined by purposive sampling technique amount 85 respondents including the Financial Administration Officer (PPK) SKPD, PPK staff at 39 SKPD staff and staff in accounting staff and reporting on SKPKD. Data analysis too was used on Partial Least Square (PLS). The findings of this study indicate that the quality of SKPD financial statements was affected by the application of reconciliation and applying accounting policies, but this study is not affected by the competence of human resources and the use of applications SIMDA. Other findings indicate that the financial statements SKPD have implications for financial accountability. The implications of this study can contribute some ideas for the Central Lombok regency government to increase financial assistance to personnel managers through education and training so that it can make good quality in the financial statements and practical contribution in formulating the direction and policies related to the accountability of local government financial reporting.