The Determinant Variables of Village Financial Statements Quality

The quality of village financial statements is required by the village government and local governments for decision making. Since the quality of financial reports is essential, this study examined the Determining Variables of Village Financial Statements Quality. The questionnaire was distributed to the sample villages, 189 villages, but only 129 villages filled the questionnaire. The obtained data were analyzed using the Structural Equation Modeling (SEM) analysis. Human resource competencies have a positive and significant influence on E-Village Budgeting, SAP application, and internal control. Meanwhile, E-Village Budgeting, SAP application, and human resource competencies have a positive but insignificant effect on the quality of village financial statements. Additionally, internal control has a positive and significant effect on the Quality of Village Financial Statements.