Determinants of Internal Factors Influencing the Quality of Government Financial Statements

Abstract

This study aims to analyze internal factors influencing the quality of government financial statements through a narrative study approach based on scholarly literature published over the past five years. Five main variables were examined: human resource competence, utilization of information technology, implementation of Government Accounting Standards, the role of internal audit, and the effectiveness of the Government Internal Control System. The synthesis results indicate that human resource competence is the dominant factor determining the reliability and relevance of financial statements, while information technology plays an essential role in enhancing efficiency, timeliness, and reporting accuracy. The implementation of Government Accounting Standards ensures consistency and comparability across institutions, whereas internal audit and the Government Internal Control System strengthen the integrity, transparency, and accountability of public financial management. This study also emphasizes that improving financial report quality requires synergy among factors through sustainable policies, human resource capacity building, technological modernization, and organizational commitment to good governance. The findings provide conceptual contributions to developing a transparent, credible, and integrity-based public financial reporting system.