The Role of the Goverment’s Internal Control System as An Intervening Variable on the Influence of Non-Compliance with The Quality of Local Government Financial Statements In Indonesia

Abstrak

This study aims to examine the influence of the goverment’s internal control
system and non-compliance with regulations on the quality of local goverment
financial statements. Local goverments financial reports have a function as a form
of accountability from the goverment to the public. This study uses Secondary data
with local goverments financial statements as Indonesia amounted to 259 from
2010 to 2014 using eviews9 test tool. The result showed that the goverments
internal control system and regulatory non-compliance have a significant effect on
the quality of local goverment financial statements with the results on internal
goverment control system variables of -0.932243 and the variable non-compliance
regulation amounted to 0.830193 which means both variables above the significant
value 0,05. On the internal goverment control system variables and regulatory noncompliance
affecting 0,203449 which means 0,796 influenced by other variables.
Keywords : quality of financial statements, goverment internal control system, non-compliance
regulation