The role of human resource competence and financial systems in enhancing regional financial report quality: Insights from Lhokseumawe

Abstract

This study investigates the influence of human resource competence and the regional financial accounting system on the quality of regional financial reports in Lhokseumawe, Aceh, Indonesia. Using a quantitative research approach, the study applies a multiple linear regression model to analyze data collected from employees of State Administrative Bodies (SKPD). The findings demonstrate that human resource competence has a significant and positive impact on the quality of regional financial reports. Likewise, the regional financial accounting system is shown to significantly and positively influence the quality of regional financial reports. Moreover, the simultaneous analysis indicates that both variables collectively explain a substantial proportion of the variations in the quality of regional financial reports. These findings underscore the essential role of human resource competence and a robust financial accounting system in enhancing the quality of regional financial reporting.