How Does the Regional Financial Accounting System Affect the Quality of Financial Statements?

This study analyzes the effect of internal control system, financial manager competence, and information technology use on the quality of local financial reports in Baubau City, Indonesia. Using a quantitative approach, data were analyzed using AMOS 24 to test the relationship between variables. The results showed that these factors play an important role in achieving an effective financial accounting system and quality financial reports. The findings provide valuable insights for local governments in improving financial policies and strengthening local financial accountability. However, there are limitations such as the reliance on self-reported data from respondents and the specific nature of the findings for Baubau City, which may not be fully generalizable to other regions. This research is expected to serve as a reference for efforts to improve local financial systems throughout Indonesia