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Does Quality of Financial Statement Affected by Internal Control System and Internal Audit?

Author

Listed:
  • Cecilia Lelly Kewo

    (Universitas Negeri Manado, Indonesia,)

  • Nunuy Nur Afiah

    (Universitas Padjadjaran, Indonesia)

Abstract

The purpose of this study to examine and analyze the influence internal control systems and internal audit to financial statement quality of local government. Usefulness of research as input for local government to improve implementation internal control, effectiveness of the internal audit function and improve quality of financial reports. Data conducted by taking 66 local government unit tool of the 15 districts and city in Indonesia. Analysis data study using path analysis. The conclusion is internal control system and internal audit partially and simultaneously have positive effect on the quality of financial statements

Suggested Citation

  • Cecilia Lelly Kewo & Nunuy Nur Afiah, 2017. "Does Quality of Financial Statement Affected by Internal Control System and Internal Audit?," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 568-573.
    • Handle: RePEc:eco:journ1:2017-02-76
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    References listed on IDEAS

    as
    1. Mary E. Barth & Wayne R. Landsman & Mark H. Lang, 2008. "International Accounting Standards and Accounting Quality," Journal of Accounting Research, Wiley Blackwell, vol. 46(3), pages 467-498, June.
    2. Gordon, Lawrence A. & Smith, Kimberly J., 1992. "Postauditing capital expenditures and firm performance: The role of asymmetric information," Accounting, Organizations and Society, Elsevier, vol. 17(8), pages 741-757, November.
    3. Sandra Cohen & Nikolaos Kaimenakis, 2011. "Assessing quality of financial reporting through audit reports: the case of Greek municipalities," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 13(3/4), pages 187-203.
    4. Altamuro, Jennifer & Beatty, Anne, 2010. "How does internal control regulation affect financial reporting?," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 58-74, February.
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    Cited by:

    1. Tikkos Sitanggang & Titik Aryati & Bambang Pamungkas & Sukrisno Agoes, 2022. "The role of the audit committee to increase the influence of audit quality and internal control on earnings management," Technium Social Sciences Journal, Technium Science, vol. 29(1), pages 399-418, March.
    2. Ya-Hui Chen & Kung-Jeng Wang & Shih-Hsun Liu, 2023. "How Personality Traits and Professional Skepticism Affect Auditor Quality? A Quantitative Model," Sustainability, MDPI, vol. 15(2), pages 1-15, January.

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    More about this item

    Keywords

    nternal Control Systems; nternal Audit Function; Financial Statement Quality;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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