The Influence of Human Resource Quality, Influence of Information Technology and Internal Control Systems on the Quality of Company Financial Reports through Company Management Performance

A Case Study on Sharia Cooperatives in East Java

Abstract

This study aims to analyze the influence of the quality of human resources, the use of information technology, and internal control systems on the quality of financial statements through the performance of company management in Sharia Cooperatives in the East Java region. This research is motivated by the importance of the quality of financial reporting as a form of accountability and transparency in cooperative financial management, which can ultimately increase the trust of members and stakeholders. Data collection was carried out through the distribution of questionnaires to 30 respondents who were administrators or managers of sharia cooperatives in the East Java region. The method used in this study is a quantitative approach with path analysis techniques to test the direct and indirect relationships between variables. The results of the study show that (1) the quality of human resources has a positive effect on the company's management performance, (2) the use of information technology has a significant effect on the company's management performance, (3) the internal control system has an effect on the improvement of the company's management performance, (4) the quality of human resources directly affects the quality of financial statements, (5) information technology makes a positive contribution to the quality of financial reports, (6) the internal control system also has a significant effect on the quality of financial statements, (7) the company's management performance has been proven to have a positive influence on the quality of financial statements. In addition, this study also found that (8) the quality of human resources affects management performance indirectly through the quality of financial statements, (9) the use of information technology affects management performance through the quality of financial statements, and (10) the internal control system also affects management performance indirectly through improving the quality of financial statements. The implications of the results of this study are to improve the quality of human resources, optimize the use of technology, and strengthen the internal control system to support the effectiveness of management and transparency of financial reporting in sharia cooperatives.