* Corresponding author.
E-mail address: hari_setiyawati@mercubuana.ac.id (H. Setiyawati)
© 2019 by the authors; licensee Growing Science, Canada
doi: 10.5267/j.msl.2019.6.025
Management Science Letters 9 (2019) 2083–2092
Contents lists available at GrowingScience
Management Science Letters
homepage: www.GrowingScience.com/msl
The importance of quality accounting information management in regional governments in Indo-
nesia
Hari Setiyawati
a*
and Caturida Meiwanto Doktoralina
b
a
Post Graduate Program of Accounting, Universitas Mercu Buana, Jakarta, Indonesia
b
Fakultas Ekonomi dan Bisnis, Universitas Mercu Buana, Jakarta, Indonesia
C H R O N I C L E A B S T R A C T
Article history:
Received: June 1, 2019
Received in revised format: June
22 2019
Accepted: June 27, 2019
Available online:
June 27, 2019
This study aims to determine the influence of information technology utilisation and the application
of good governance principles on the quality of accounting information. The survey is an explana-
tory research intending to explain the causal relationships between variables through testing hy-
potheses. The analysis is used to determine the independent variables’ influence on the dependent
variable. This research is conducted based on existing theories which were later developed into a
research model designed to examine the effect of information technology utilisation and the appli-
cation of good governance principles on the quality of accounting information. The study aims to
review the quality of accounting information to answer research questions concerning the effect of
information technology utilisation and the application of principles of good governance on the qual-
ity of accounting information. The benefit of this research is that it contributes scientifically to
financial accounting and public sector science and it attempts to solve the problems stakeholders
face when implementing tasks related to the quality of accounting information. The study results
state that the use of information technology affects the quality of accounting information, as does
the application of good governance principles. This study’s implications will help raise awareness
concerning the importance of integrity in the accounting reporting system in regional governments
in Indonesia.
© 2019 by the authors; licensee Growing Science, Canada
Keywords:
Information Technology
Good Governance Principles
Quality of Accounting Information
1. Introduction
According to the Indonesian Supreme Audit Institution’s audit of local government financial reports
(LGFR), regional governments in Indonesia still suffer from poor-quality financial reports. Furthermore,
the audit detected 2,887 problems in controlling the implementation of the revenue and expenditure
budget and 1,252 issues with internal control structures (Indonesian Supreme Audit Institution, 2018).
Thus, the quality of financial statements is not in line with expectations. The quality of financial account-
ing information refers to the information’s qualitative characteristics (Kieso et al., 2011; Kieso et al.,
2012). Hall (2012) stated the quality of accounting information depends on its relevance, timeliness,
accuracy, completeness and summarising.