The Influence of Accounting Information Systems and Internal Control Systems on the Quality of Medan City Government Financial Reports

This study aims to analyze the effect of accounting information systems and internal control systems on the quality of the Medan City Government’s financial reports. The quality of local government financial reporting is an important indicator of transparent, accountable, and reliable public governance. An adequate accounting information system is essential to support the accurate recording, processing, storage, and presentation of financial information. Meanwhile, an effective internal control system plays an important role in ensuring that financial management processes are carried out in accordance with applicable regulations while minimizing the risk of errors, irregularities, and inappropriate financial practices. This study employed an associative quantitative research approach. The research used primary data collected through questionnaires distributed to 63 respondents working in sub-district offices within the Medan City Government. The data collection process was conducted to obtain information regarding the implementation of accounting information systems, internal control systems, and the quality of financial reports. Data analysis was performed using multiple linear regression, t-tests, the F-test, and the coefficient of determination. The results indicate that accounting information systems have a positive and significant effect on the quality of financial reports, with a t-value of 2.828 and a significance value of 0.006. Internal control systems also have a positive and significant effect on financial report quality, with a t-value of 3.554 and a significance value of 0.001. Simultaneously, accounting information systems and internal control systems have a significant effect on the quality of financial reports, as indicated by an F-value of 111.209 with a significance value of less than 0.001. The coefficient of determination indicates that the two independent variables explain 84.2% of the variation in financial report quality, while the remaining 15.8% is explained by other factors outside the scope of this study. These findings emphasize that strengthening accounting information systems and internal control systems is essential for improving the quality, reliability, transparency, and accountability of local government financial reporting, particularly within the Medan City Government.