Reliability of Financial Reports: Aspects of Internal Control Systems and Compliance with Legislation

Abstract : This study aimed to empirically test the effect of weaknesses in the internal control system and non-compliance with statutory provisions simultaneously on the reliability of financial statements, to empirically test the effect of weaknesses in the internal control system on the reliability of financial statements, and to empirically test the effect of non-compliance with statutory provisions on the reliability of financial statements. The type of research used is associative research. The data used was secondary data. The population in this study was 60 Financial Reports of the Sesumbagsel Regency/City Government in 2021-2022. The sample used was 60 Financial Reports of the Sesumbagsel Regency/City Government with the purposive sampling method. Data collection techniques are by using document analysis. The analysis methods used were quantitative and qualitative. The analysis technique used is multiple linear regression. The results showed that simultaneously, weaknesses in the internal control system and non-compliance with statutory provisions had a significant effect on the reliability of financial statements. Partially, Weaknesses in the internal control system had a significant effect on the reliability of financial statements. Partially, non-compliance with statutory provisions did not have a significant effect on the reliability of financial reports.