Analysis of the Impact of Financial Statements Quality on Public Accountability

Abstract

The lack of compliance with the quality standards of financial reports indicates weak accountability. The BPK found a deviation in South Tangerang City Government budget up to 1.7 billion rupiahs in the 2017 fiscal year; this incident shows the 2017 WTP achievement does not reflect the quality of accountable financial reports. This study aims to examine the influence of organizational commitments, implementation of internal control systems, and accounting understandability towards the quality of financial statements and their impact on public accountability. The population of this study is a Regional Working Unit (SKPD) in South Tangerang City. The sampling technique used a saturation non-probability sampling method and obtained 36 samples. The results reveal that organizational commitment has no significant effect on the quality of financial statements, while the application of internal control systems and accounting understandability has a significant effect on the quality of financial statements. The quality of financial reports has a significant impact on public accountability. Contribution/