Journal of Applied Accounting and Taxation Article History

Vol. 2, No. 1, March 2017, 68-74 Received July, 2016

e-ISSN: 2548-9925 Accepted December, 2016

The Effect of Human Resources Competence

and Application of Regional Financial
Accounting Systems on Quality of Financial
Report
Synthiaa*
a
Jurusan Manajemen Bisnis, Politeknik Negeri Batam, [email protected], Indonesia

Abstract. This research conducted to determine the effect of human resources competencies and application of financial
accounting system on the quality of financial reports showing. Mechanical determination of sample using purposive sampling
technique with a total sample of 165 people. The type of data used are primary data. Methods of data collection is done by
questionnaire. Data using multiple regression analysis. The results indicate that the competence of human resources, financial
accounting system application have a significant positive effect on the quality of the financial statements.

Keywords: quality of financial reports, human resource competency, financial accounting systems

*
Corresponding author. E-mail: [email protected]
Synthia | Journal of Applied Accounting and Taxation 2 (1) 68-74 69

Introduction Government has a positive effect on the quality of

local government financial reports?
The paradigm shift of governance from the
paradigm of formal government to a good
governance paradigm puts the administration of Literature Review
government should become more efficient and
equitable for the community Concrete efforts to Agency Theory
realize transparency and accountability of
government financial management, both central and Jensen and Meckling (1976) describe the agency
local government is to submit reports accountability relationship within agency theory that the firm is a
in the form of financial statements. The financial nexus of contract between the owner of the economic
report is a medium for the government to account for resources (principal) and the manager (agent) that
its financial performance to the public. The resulting takes care of the use and control of the resource.
government financial statements should contain With regards to agency issues, the practice of
quality information and meet the principles on time financial reporting in public sector organizations is a
and be prepared in accordance with Governmental concept based on agency theory. In financial
Accounting Standards in accordance with reporting, the government acting as agent has the
Government Regulation Number 24 Year 2005. obligation to provide information useful to users of
The financial statements produced by the local government financial information acting as principal
government will be used by some interested parties as in assessing accountability and making decisions
basic information for economic, social and political whether economic, social and political decisions and
decision making as well as evidence of accountability either directly or indirectly through its
and management. Huang et al. (1999) in Xu et al. representatives.
(2003) states that information will be useful if the This study aims to determine whether or not the
information can support decision making and can be influence of the relationship between the dependent
understood by the users. Therefore, local variable quality of financial statements with
governments must pay attention to the information independent variables of human resources and
presented in the financial statements for the purposes accounting system local government.
of planning, controlling, and decision making.
This research refers to previous research, Indriasari The Influence of Human Resource Competence on
& Nahartyo (2008) which stated that the utilization of Quality of Financial Statement
information technology and internal control have
positive effect on the reliability of local financial This study intends to re-examine the relationship
reporting information, while the human resource between the competences of human resources owned
capacity has negative effect. Meanwhile, in by the financial staff with the quality of financial
Rofiyantie (2011) study concluded that human statements. The existence of human resources is
resources and the application of financial accounting instrumental in the preparation of financial
system have an effect on financial reporting statements. If the human resources contained within a
information value, it is also concluded by Arfianti government are competent in their field and able to
(2011) that human resources, internal control system perform their duties properly, it will produce a good
and information technology have a positive effect on quality of financial statements and in accordance with
value of financial statement information. In research the rules that have been determined.
Nunuy & Nuryanto (2013) also strengthen the results H1: The competence of human resources has a
Rofiyantie (2011) and Arifianti (2011). positive effect on the quality of local
Based on the description of the background, then government financial reports.
the issues of concern in this study can be formulated
as follows: Fist, does the competence of human
resources owned by Batam Government financial The Influence of Application of Local Financial
staff affect the quality of local government financial Accounting System to Quality of Financial Statement
statements? Second, is the Local Government
Accounting System implemented by the Batam Regional financial accounting system according to
the Minister of Domestic Affairs Regulation No. 59
70 Synthia | Journal of Applied Accounting and Taxation 2 (1) 68-74

of 2007, which is a series of procedures ranging from Research Methods

the process of data collection, recording, overview,
up to financial reporting, in order to account the This study uses quantitative research methods and
execution of APBD that can be done manually or conducted in Batam on the Regional Device Work
using computer applications. Research Roviyantie Unit Batam. Sampling is done by purposive sampling
(2011), found empirical evidence that the with criteria of structural officials and staff who have
implementation of regional financial accounting authority in the process of preparing financial
system significantly influence the quality of financial statements. The instrument of this study is in the form
statements. In order to obtain relevant, reliable and of questionnaires, the questionnaire proposed consists
reliable financial reports, local governments must of 3 variables, namely the quality of financial
have a reliable accounting system. A weak statements as the dependent variable and competence
accounting system makes the resulting report less of human resources and the application of regional
relevant. With a good system, it will facilitate in financial accounting system as an independent
processing financial data that works in accordance variable. The variable consists of several indicators
with established accounting standards. measured using a Likert scale of 1-5.
H2: Application of local financial accounting
system has a positive effect on the quality of
local government financial statements.

Table 1
Operational Definition of Variables
No. Variable Dimension Indicator Scale
1 Quality of Ability and characteristics owned by civil Skills Interval
Human servants in the form of skills, knowledge and Knowledge
Resources attitudes required in the implementation of his Attitude
position.
2 Regional Accounting system that includes the process of Identification Interval
Financial recording, classification, interpretation, summary Classification
Accounting of transactions or financial events and financial The existence of a control system to ensure
System reporting in the framework of APBD reliability
Calculates each operating influence
3 Quality of Normative measures that need to be manifested Relevant Interval
Financial in accounting information so as to meet its Reliable
Statements objectives. Can be compared
Understandable

Results and Discussion Based on the data obtained from the research
results, can be seen the characteristics of respondents.
In this study questionnaires were distributed as The characteristics are used to find out the general
many as 175 questionnaires. All of the total description of respondents in SKPD Batam
questionnaires distributed, 165 questionnaires were Government, including the last education, education
returned and can be used as an analysis material. and financial training that followed and the work of
the respondent.
Table 2 Based on Table 2 shows that the most recent
Characteristics of Respondents education data of respondents is bachelor-Accounting
Explanation Education Sum (%)
Last education High School 33 20
with a presentation of 32.7% or as many as 54
Diploma III 17 10.3 people. Furthermore, at level bachelor with 20.6%
Bachelor 34 20.6 presentation or 34 people, high school with
Bachelor-Accounting 54 32.7 presentation 20% or 33 people, master with
Master 27 16.4
Education and training (0) never 4 2.4
presentation 16.4% or 27 people and last education
1- 3 times 82 49.7 diploma III with presentation 10.3% or 17 people.
3 – 5 times 59 35.9 While the number of the most followed by 1-3
> 5 times 20 12.2 respondents training education, as many as 82
Work experience < 5 years 160 97
6 – 10 years 5 3
respondents (49.7%), then the respondents training
ranged from 3 to 5 times as many as 59 respondents
Synthia | Journal of Applied Accounting and Taxation 2 (1) 68-74 71

(35.9%), then the training of more than 5 times as Table 2 also shows that 97% of respondents have a
many as 20 respondents (12.2%) and there were 4 working period of less than 5 years, and 3% of
respondents who had never attended the training. respondents have 6-10 years’ experience.

Table 3
Validity Test
Competence HR (X1) Regional Financial Accounting System (X2) Quality Of Regional Financial Report (Y)
r table
N r value Result N r value Result N r value Result
1 .251 Valid 1 .366 Valid 1 .217 Valid .153
2 .235 Valid 2 .391 Valid 2 .307 Valid .153
3 .279 Valid 3 .265 Valid 3 .281 Valid .153
4 .261 Valid 4 .129 invalid 4 .098 invalid .153
5 .155 Valid 5 .238 Valid 5 .056 invalid .153
6 .261 Valid 6 .380 Valid 6 .150 invalid .153
7 .371 Valid 7 .393 Valid 7 .317 Valid .153
8 .118 invalid 8 .327 Valid 8 .230 Valid .153
9 .179 Valid 9 .223 Valid 9 .228 Valid .153
10 .341 Valid 10 .344 Valid .153
11 .340 Valid .153
Total 1000 Total 1000 Total 1000
Source: SPSS processed products

Validity test to test each variable used in this concept of measuring each the variable of the
research. Where the overall research variable 32 questionnaire is reliable so that for the next items on
statement that must be answered by the respondent. each concept of the variable is worthy used as a
Based on Table 3 shows that r table = 0.153. Test is measuring tool.
valid if r value > r table. For the variable of Normality test is used to test whether the
competence of human resources (X1) it is known that distribution of data follows or approaches the normal
corrected item-total correlation of invalid question is distribution, good data is the data that the normal
number 8 (0,118) while for instrument of SAKD (X2) distribution pattern.
application it is known that the invalid corrected
item-total correlation is number 4 (0.129) and for Table 5
Normality Test
instrument the quality of the local financial
X1 X2 Y Α
statements (Y) is known that the invalid corrected N 165 165 165
item-total correlation value is number 4 (0.098), 5 Kolmogorov-Smirnov Z 1.907 2.489 1.880 0.05
(0.056), 6 (0.150) therefore, the test is repeated by Source: SPSS processed products
eliminating invalid questions.
Based on Table 5 it can be seen that the results of
Table 4 normality analysis with Kolmogorov Smirnov Test
Reliability Test
X1 X2 Y CA
are respectively 1.907, 2.489, and 1.880. The value is
Cronbach's N Cronbach's N Cronbach's N all greater than 0.05 and means that the data of all
Alpha Alpha Alpha variables is normally distributed.
.764 8 .764 9 .754 8 0.60 Multicollinearity test aims to test whether the
regression model found a correlation between
Reliability test is the level of stability of a independent variables. To determine whether there is
measuring device in measuring a symptom or event. multicollinearity in the regression model in this study
The higher the reliability of a meter, the more stable is to look at the value of VIF and tolerance and
the measuring device is. According to Nunnaly analyze the correlation matrix of independent
(1967) in Ghozali (2001), a construct is said to be variables.
reliable if it gives a Cronbach alpha value> 0.6.
Based on Table 4, the results of Cronbach alpha Table 6
Multicollinearity Test
for the constructs of HR (X1) 0.764, SAKD (X2) Collinearity Statistics
0.764 and the quality of the financial statements Model
Tolerance VIF
0.754 above 0.60 indicate that all variables have 1 X1 .837 1.195
Cronbach Alpha above 0.60 so it can be said all the X2 .837 1.195
72 Synthia | Journal of Applied Accounting and Taxation 2 (1) 68-74

Based on Table 6 the competence of human Table 8

Hypothesis Test
resources (X1) with VIF 1.195 and tolerance > 0.837,
B S.E Β t Sig.
while the application of SAKD (X2) is equal to value Constant 16.144 3.400 4.748 **0.000
(VIF) 1.195 and tolerance > 0.837. Thus it can be HR 0.189 0.090 0.166 2.09 **0.038
concluded there is no correlation of independent SAKD 0.275 0.075 0.291 3.671 **0.000
variables between one another, or independent R2 0.140
variable in this research is free multicollinearity R 0.388
F Value **0.000
because VIF value on HR (X1) and SAKD (X2) < 10,
Note: **p<0.05
and tolerance value on human resources (X1) and
SAKD (X2) > 0.1 (Ghozali, 2006).
The value quality of the financial statements shows
Heteroskedastic test aims to test whether in a
a value of 16.144 which means an increase of 0.189 if
regression model there is a variance inequality of the
human resources up 1 unit (assumed SAKD variable)
residual over one observation to another observation.
and increased by 0.275 if the regional financial
If the variance of the residual over one observation to
accounting system rose 1 unit (assumed HR variable).
another observation remains, it is called
To determine whether the independent variable
homoscedasticity and if different is called
simultaneously significant effect on the dependent
heteroscedasticity.
variable, then tested F. The degree of trust used 0.05.
To approximate the heteroscedasticities in this
If the value of F calculation results greater than the
study using Glester test. This testing glacier compares
value of F according to the table then the alternative
significantly from this test if the result is > 0.05 or
hypothesis, which states that all independent
5% significance. If the significance above 5% then
variables simultaneously have a significant effect on
concluded the regression model does not contain any
the dependent variable. Based on Table 8 result of
heteroscedasticities.
data processing seen with significance value that is
Table 7 0.00 < 0.05. This indicates that the independent
Heteroscedasticities Test variables (competence of human resources and the
Model Sig. A application of regional financial accounting system)
1 (Constant) .145 together (simultaneously) able to explain its influence
X1 .357 .05 on the dependent variable (the quality of local
X2 .070 .05
financial statements).
The value of t table is α = 0.05 with degrees of
Based on Table 7 by looking at significance and freedom (db) = n-k = 165-2 = 163 is 1.654, based on
alpha = 5%. It can be seen that the variable of HR the analysis results in statistic table it can be seen the
(X1) Significant value (35% > alpha 5%), local effect of independent variables are as follows:
financial accounting system variable (X2) significant a. Hypothesis testing is done by comparing the
value (7% > alpha 5%) which means that none significance value of 0.05. For the variable
independent variable statistically significant influence competence of human resources (X1) significant
variable independent. So it can be concluded that the value is 0.03. Thus it can be said that the significant
regression model does not contain any value of 0.03 < 0.05. Coefficient value 18.9% from
heteroscedasticity. variable X1 positive value that is 0.189. This shows
that this study can prove the competence of human
Hypothesis Test resources (X1) have a significant positive
significance to the quality of financial statements.
Based on Table 8, adjusted R square is 0.140. It Thus the first hypothesis (H1) is accepted.
identifies that the contribution of competence b. Hypothesis testing 2. This test is done by
variable of human resources and the application of comparing the significant value 0.05. For variable
financial accounting system of area is 14%, while application of SAKD (X2) significant value is 0.000.
86% other is determined by other factors outside the Thus it can be said that significant 0.00 < 0.05.
model that is not detected in this research. Coefficient value of 27.5% from variable X2 is
Furthermore, in Table 7 can be analyzed positive value that is 0.275. The results of this study
estimation model as follows: indicate that the application of SAKD (X2) has a
significant positive significance to the quality of
KLK = 16.144 + 0.189 SDM + 0.275 SAKD
Synthia | Journal of Applied Accounting and Taxation 2 (1) 68-74 73

financial statements thus the second hypothesis (H2) regional financial accounting system by
is accepted. Kepmendagri No. 29/2007 namely accounting system
that includes the process of recording, classification,
interpretation, summary, transactions or financial
Data Analysis events and financial reporting in the context of
APBD, implemented in accordance with generally
Effect of Human Resources Competence on Quality acceptable accounting principles. The exposure is
of Regional Financial Report. supported by Halim (2002) which states, to be able to
provide accurate and accurate information required a
The results of this study indicate that the system that can be used in the provision of such
competence of human resources have a significant information. So it is clear to obtain the quality of
positive impact on the quality of local financial local financial statements according to SAP must be
statements. Thus, if the competence of HR financial through the implementation of regional financial
bench on SKPD Batam, in the sense of financial accounting system is good too.
human resources are competent, then the quality of
local financial statements produced on SKPD Batam
better. This is also accompanied by the skills, Conclusion
knowledge and abilities possessed by respondents in
preparing financial statements. In addition, work Based on the results of the analysis and discussion
experience, work skills and training owned by an it can be concluded that human resources positive
official SKPD Batam Government can affect the influence on the quality of local government financial
quality of human data sources. statements Batam, which means the more competent
The results of this study are in line with the theory human resources the better quality of financial
put forward by Bastian (2006) that the existence of reports produced. Likewise with the regional
adequate financial staff competence allows the financial accounting system positive influence on the
realization of quality financial statements in quality of local government financial statements
accordance with accounting standards of government Batam, which means the better local financial
accounting. Judging from the frequency distribution, accounting system applied, the better also the quality
that the competence of human resources have an of regional financial reports generated.
influence on the quality of local financial statements
this can be evidenced from respondents' answers to Suggestions and Implications
the questionnaire distributed. In general, the
competence of human resources in SKPD Batam Based on the results of the analysis that has been
government is good. done in this study the researcher suggests that are as
follows: First, for further research, it is necessary to
The Influence of SAKD Application on Quality of examine other factors that may affect the quality of
Regional Financial Report regional financial reports, such as the internal control
variables, the application of government accounting
This study aims to see how much influence the standards and many other things that can be used as
implementation of SAKD on the quality of local variables research, so it can be compared with the
financial statements. From the results of hypothesis results of research authors. Second, increase the
testing found that the application of SAKD have a number of samples to be studied, so that data analysis
significant positive significance to the quality of can be more accurate. The next, researcher suggest
financial statements. If the financial accounting that existing employees within SKPD environment of
system has been applied properly by SKPD Batam Batam Government participate more in improving the
Government, the quality of local financial statements quality of regional financial report in order to realize
will be better. Because basically the accounting good governance. The last, researchers suggest that
system is a unity that if not implemented or there is existing leaders in every SKPD Batam Government
one part of the system that is not applied it is difficult better monitor the performance of subordinates in
to obtain the quality characteristics of local financial each preparation of financial statements.
statements according to SAP that is relevant, reliable,
understandable and comparable. As the definition of
74 Synthia | Journal of Applied Accounting and Taxation 2 (1) 68-74

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