EFFECTS OF GOVERNMENT ACCOUNTING STANDARDS, HUMAN RESOURCE COMPETENCE, AND EMPLOYEE PERFORMANCE ON FINANCIAL REPORT QUALITY

Abstract

Financial reporting quality is an important aspect of public sector accountability and transparency. High-quality financial reports provide relevant, reliable, comparable, and understandable information for stakeholders in evaluating government performance. This study aims to examine the effects of Government Accounting Standards (SAP), Human Resource Competence, and Employee Performance on Financial Reporting Quality at the Ministry of Religious Affairs Office of Bima Regency. This study employed a quantitative research approach using primary data collected through questionnaires distributed to employees involved in financial management and reporting activities. A total of 77 respondents participated in the study. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS software. The results indicate that Government Accounting Standards (SAP) have a positive and significant effect on Financial Reporting Quality. Employee Performance also has a positive and significant effect on Financial Reporting Quality. However, Human Resource Competence does not have a significant effect on Financial Reporting Quality. These findings suggest that compliance with accounting standards and strong employee performance play a more important role in improving financial reporting quality than individual competence alone. The study contributes to the public sector accounting literature by providing empirical evidence on the determinants of financial reporting quality within government institutions. The findings also provide practical implications for policymakers and public sector managers in strengthening financial reporting practices through effective implementation of accounting standards and performance enhancement initiatives.