FACTORS AFFECTING THE QUALITY OF KSPPS PEKALONGAN FINANCIAL REPORTS

Abstract

The importance of financial reports at a KSPPS financial institution is that they must be able to meet the quality of financial reports to avoid deliberate fraud committed by authorized officials at the financial institution. Meanwhile, there is still the phenomenon of financial institutions having an interest in making financial reports look healthy, or perhaps there is a background of individual interest in getting bonuses for showing good financial performance, even though it’s the opposite. Therefore, this research is very important. This research examines the influence of the Internal Control System, Islamic Corporate Governance (ICG), and Human Resource Capacity (HR) on the Quality of Financial Reports at KSPPS in Pekalongan. This research is quantitative research with a questionnaire approach. Data obtained from 32 respondents specifically for the finance department (BO and cashier) at the 4 KSPPS studied were considered to have experienced positive developments. The analysis tool used is Multiple Regression. The results of data analysis show that the Internal Control System and HR Capacity significantly positive influence the Quality of Financial Reports. However, Islamic Corporate Governance (ICG) has not been proven to have a significant impact. These findings provide important insights for cooperative management and emphasize the importance of Internal Control Systems and HR Capacity in improving the Quality of Financial Reports