The Study of Developing Strategy Model of Qualified Financial Statement
The high quality financial statement is a report which presents the right, honest, relevant, reliable, comparable, and understandable information. This research aimed at analyzing the effects of the management capability and the quality of the internal auditor on the information quality of the financial statement. The research method used was the explanatory research. The population included all the local work units (SatuanKerjaPerangkat Daerah, further called SKPD), who has prepared the financial statements. The research also used questionnaire as an instrument. The total samples included 377 respondents who in their positions were responsible for the local finance (regents/mayors/vice regents/vice mayors/ heads of SKPD) and the local financial coordinators (the local government secretaries). The hypotheses were analyzed using the Structural Equation Model.The results of the research revealed that the management capacity had a positive effect on the information quality of the financial statement, and that the service quality of the internal auditor had a positive effect on the information quality of the financial statement. Thus, it is concluded that in order to improve information quality of the financial statement, the commitment of both the management and the internal auditor is required if the quality of the management capability and the service must be improved.The results of this research can be used as the basis in implementing the theory of stewardship in the local government. Also, the factors of political environment need to be added to the sociological assumption if the stewardship theory be developed.
Keywords - The information quality of financial statement, the management capability, the service quality of the internal auditor