Factors Affecting Financial Reporting Quality (Study on the Provincial Government of Dki Jakarta)

Abstract

The purpose of this research is to obtain empirical evidence and examine the influence of organizational culture, transparency and weaknesses of the internal control system on the quality of financial reporting on Local Government Units in Capital Provinceof Jakarta. This research was conducted using quantitative survey methods with causality research design. The data used as research sourced from questionnaires. The population in this study is the Local Government Units in Capital Province of Jakarta. Thesampling technique used was purposive sampling. Questionnaires were distributed to 36 local government units. Each Unit is given 2 (two) questionnaires for the financial department. Analysis and processing of data using the help of the statistical computer program SmartPLS v.3.2.8.The results obtained from the test show: (1) organizational culture significantly influence financial reporting quality, (2) transparencydo not significantly influence financial reporting quality, (3) internal control system weakness significantlyinfluence financial reporting quality.Keywords: Organizational Culture, Transparency, Weaknesses of the Internal Control System, Quality of Financial Reporting.