Joni Setiawan, Sri Mulyani, Memed Sueb, Srihadi Winarningsih
This study examined the influence of local government accounting information systems and staff competencies on the quality of local government financial statements. The research covered provincial, county and municipal governments on Java Island, except for Jakarta Capital Province (DKI Jakarta), with a total of 102 local governments surveyed. The Structural Equation Modeling (SEM) technique was employed in the research. The study concludes that local government accounting information systems and the competencies of key staff have a significant positive influence on the quality of local government financial statements, and consequently indicates that the better the implementation of local government financial accounting information systems and the more developed the competencies of key staff, the better will be the quality of local government financial statements. This article is expected to be of benefit to local governments, central government, public accounting firms, local legislative assemblies, CSOs concerned with the administration of local government, and local communities with an interest in regional development by helping them to obtain a clear picture of how local government financial management is implemented. The findings of the study should also help to provide input on how to design and implement local government financial management applications, deploy competent staff, and compile high-quality, accountable, and transparent local government financial statements.