Determining Factors for The Successful of Financial Reporting in Indonesian State-Owned Enterprises

The increasing losses experienced are a threat to the business sustainability of state-owned companies in Indonesia.This condition is allegedly due to an ineffective financial reporting system which has an impact on producing low quality accounting information.This research aims to prove the relationship between internal auditors and accounting information systems on the quality of financial reporting at state-owned banks in Indonesia.Quantitative descriptive methods are used to test the influence between variables, then the theoretical model will be tested using the Partial Least Square Structural Equation Model.The research sample was 67 accounting and finance managers of stateowned banks who were selected based on a simple random sampling technique with a minimum sample referring to the provisions of the rule of thumb.Empirically, this research shows that the research model can be tested and that there is a close relationship between the quality of internal auditors and accounting information systems on the quality of state-owned bank financial reports in Indonesia.Meanwhile, the other findings: the effectiveness of accounting information systems contributes more closely to the quality of financial reporting compared to the quality of internal auditors; Auditor competency is the main determining factor for auditors to carry out their role effectively; and ease of access are the main determining factors for the functioning of the accounting information system in the company.