Determinants of HR Competence, Internal Control, and GAS on Public Financial Reporting Quality

Abstract

This study aims to analyze the relationship between human resource competency, the effectiveness of internal control systems, and an understanding of Government Accounting Standards on the quality of public sector financial reports using a Systematic Literature Review approach. The study was conducted on Google Scholar-indexed articles published in the last five years. The results of the review indicate that human resource competency is a key factor in ensuring the accuracy and precision of financial recording and reporting processes. Internal control systems play a strategic role in reducing the risk of errors and ensuring compliance with procedures, but their effectiveness is greatly influenced by the capacity and discipline of implementers. An adequate understanding of Government Accounting Standards serves as a normative foundation that ensures consistency in reporting across government units. These three factors have been shown to reinforce each other and play a complementary role in improving the quality of financial reports. In addition, leadership commitment and the use of information technology emerged as supporting factors that strengthen the implementation of these three main variables. This study emphasizes the need for a holistic approach to improving reporting quality, including sustainable human resource development, strengthening internal control systems, and harmonizing the understanding of Government Accounting Standards.