Analysis of Accounting Understanding, Accounting Information Systems and Internal Control Systems on the Quality of Financial Reports

This study aims to examine the extent to which accounting comprehension, accounting information systems, and internal control systems influence the quality of financial reports among MSMEs in Blitar City. Employing a quantitative research design, data were collected through questionnaires distributed to MSME practitioners. Multiple linear regression analysis was utilized to investigate the relationships between the variables. The results indicate that all three factors—accounting comprehension, accounting information systems, and internal control systems—have a significant and positive impact on the quality of MSME financial reports. These findings highlight the importance of enhancing accounting skills, implementing robust accounting information systems, and strengthening internal controls to improve the reliability and relevance of financial statements. The Adjusted R Square value of 41.7% suggests that these variables collectively account for a substantial proportion of the variation in financial report quality. Furthermore, simultaneous testing confirms the significant influence of these independent variables on the financial reporting practices of MSMEs in Blitar City.