The Influence Of Internal Control Systems And Managerial Competence On The Quality Of Bumdes Financial Reports With Information Technology As A Moderating Variable (study in Karo Regency)
Keywords:
BUMDes, Financial Report Quality, Internal Control Systems, Information Technology Moderation, Managerial Competence
Abstract
This study examines the influence of internal control systems (SPI) and managerial competence on the quality of financial reports in Village-Owned Enterprises (BUMDes) in Karo Regency, Indonesia, with information technology (TI) as a moderating variable, amid challenges in rural economic governance and digital adoption. Employing a quantitative associative design, data were collected via questionnaires from 105 managers (chair, secretary, treasurer) across 35 BUMDes, selected through purposive sampling, and analyzed using multiple linear regression and Moderated Regression Analysis (MRA) in IBM SPSS 25, following classical assumption tests. Findings reveal SPI and competence significantly and positively affect financial report quality both partially (t=8.261, p<0.001; t=8.188, p<0.001) and simultaneously (F=62.705, p<0.001; R²=55.1%), while IT significantly moderates SPI's effect (t=-2.820, p=0.006; coefficient=-0.031) but shows no moderation for competence (t=-0.996, p=0.321). The full MRA model explains 66.3% variance. These results underscore the need for integrated capacity building and phased IT implementation to enhance BUMDes transparency and PADes, enriching contingency theory in rural accounting contexts.
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Otley, D.T. (1980). The contingency theory of management accounting: Achievement and prognosis. Accounting, Organizations and Society, 5(4), 413–428.https://doi.org/10.1016/0361-3682(80)90040-9
Putri, VA, Junjunan, MI, & Jannah, BS (2025). Evaluation of the implementation of internal control systems on the quality of financial reports of KPP Customs and Excise X. Indonesian Public Accounting Journal, 3(1), 21–34.
Rahmawati, E., Sonita, S., Kholid, AWN, & Sofyani, H. (2022). Human resource competency and the quality of local government financial reports: The role of internal control systems as a mediator. Journal of Accounting and Finance Reviews, 12(2), 346–359.https://doi.org/10.22219/jrak.v12i2.21791
Ratmasari, DI, Yuliani, NL, & Purwantini, AH (2021). The quality of BUMDes financial reports and the factors that influence them. Borobudur Accounting Review, 1(1), 66–77.https://doi.org/10.31603/bacr.4892
Sasmita, S., & Zulvia, D. (2023). The influence of internal control systems and information technology on the quality of financial reports of the Community and Village Empowerment Service of West Sumatra Province. Journal of Management and Economic Research, 1(3), 54–72.https://doi.org/10.54066/jrime-itb.v1i3.271
Sidik, H. (2020). Enhancing the role of village-owned enterprises (BUMDes) as drivers of the rural economy in Langensari Village. Journal of Community Service, 4(1), 21–30.
Sinarwati, NK, & Prayudi, MA (2021). Performance of village-owned enterprises and their contribution to village original income. Journal of Social Sciences and Humanities, 10(3), 505–514.https://doi.org/10.23887/jish-undiksha.v10i3.37931
Sitawati, R., Sa'adah, K., & Subchan. (2020). The influence of human resource competency and internal control systems on the quality of financial report information with the moderation of information technology utilization. Indonesian Accounting Research Journal, 5(2), 91–107.
Sugiyono. (2021). Quantitative, qualitative, and R&D research methods. Alphabet
Al Farishi, M., & Lauw, T. (2023). The influence of internal control systems on the quality of BUMDes financial reports. Indonesian Journal of Public Accounting, 8(2), 115–129.
Almas, FA, Yuliani, NL, & Purwantini, AH (2025). The influence of internal control and accounting understanding on the quality of BUMDes financial reports. Proceeding of National Conference on Accounting Research, 4(1), 55–68.https://doi.org/10.31603/conference.14523
Amelia, F., Hamdani, & Juniar, A. (2024). Determinants of BUMDes financial management based on good organizational governance. YUME: Journal of Management, 7(2), 211–223.https://doi.org/10.37531/yum.v7i2.6767
Amira, L., & Astuti, B. (2023). The influence of human resource competency and internal control systems on the quality of financial reports in the Regional Government Work Units (SKPD) of South Bengkulu Regency. Journal of Effective Economics, 4(1), 66–78.https://doi.org/10.36085/jee.v4i1.5364
Ariska, I., Dasila, RA, & Sari, N. (2023). The influence of accounting information technology, competence, and training on the quality of BUMDes financial reports. Jesya: Journal of Economics and Sharia Economics, 6(2), 1447–1458.https://doi.org/10.36778/jesya.v6i2.1125
Ayuningtyas, DEA, Mutmainah, K., & Fitriyani, FY (2025). Analysis of factors influencing the quality of BUMDes financial reports in Wonosobo Regency. Journal of Accounting and Sharia Society, 5(3), 77–91.https://doi.org/10.32699/jamasy.v5i3.9512
Bestari, KA, & Wahyuni, F. (2023). Determinants of the quality of local government financial reports. Indonesian Accounting and Business Review, 7(1), 163–184.https://doi.org/10.18196/rabin.v7i1.16995
BPS Karo Regency. (2025). Karo Regency in figures 2025. Karo Regency Central Statistics Agency.
Chenhall, R. H. (2003). Management control systems design within its organizational context: Findings from contingency-based research and directions for the future. Accounting, Organizations and Society, 28(2–3), 127–168.https://doi.org/10.1016/S0361-3682(01)00027-7
Committee of Sponsoring Organizations of the Treadway Commission. (2013). Internal control—Integrated framework. COSO.
Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74.https://doi.org/10.5465/amr.1989.4279003
Firmansyah, A., Yuniar, MR, & Arfiansyah, Z. (2022). Quality of financial reports in Indonesia: Information transparency and characteristics of local governments. Indonesian Journal of State Budget and Finance, 4(2), 101–118.
Firnanda, A. (2023). Literature review: Quality of financial reports in village-owned enterprises (BUMDes) in Indonesia. Scientific Journal and Student Work, 1(5), 181–197.https://doi.org/10.54066/jikma.v1i5.785
Ghozali, I. (2021). Multivariate analysis application with IBM SPSS 25 program (9th ed.). Diponegoro University Publishing Agency.
Hadis, F., Ihsan, H., Dwiharyadi, A., Septriani, Y., & Afni, Z. (2022). The influence of information technology utilization and human resource competency on the quality of financial reports. Accounting and Management, 17(2), 106–120.https://doi.org/10.30630/jam.v17i2.202
Hapsari, TA, Yuliani, NL, & Purwantini, AH (2024). Antecedents of BUMDes financial report quality. Journal of Culture Accounting and Auditing, 3(1), 132–142.https://doi.org/10.30587/jcaa.v3i1.7779
Indrawan, IPA, & Dewi, PEDM (2022). The influence of accounting understanding, utilization of accounting information systems, and internal supervision on the quality of financial reports in BUMDes throughout Jembrana Regency. Journal of Professional Accounting, 13(2), 201–214.https://doi.org/10.23887/jap.v13i02.37163
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Kansah, DD, Utaminingtyas, TH, & Fauzi, A. (2023). The influence of human resource competency and internal control systems on the quality of local government financial reports with the use of information technology as a moderating variable. Jurnal Revenue: Jurnal Akuntansi, 4(1), 45–58.https://doi.org/10.46306/rev.v4i1
Khoirunisa, NA, & Khoiriawati, N. (2022). The influence of human resource competency and information technology utilization on the quality of BUMDes financial reports in Karangrejo District. Fair Value: Scientific Journal of Accounting and Finance, 5(1), 183–194.https://doi.org/10.32670/fairvalue.v5i1.2244
Nasser, J. K., & Al-Kharusi, Y. (2022). The impact of internal control systems on the quality of financial reports. Global Scientific Journal, 10(6), 411–427.
Otley, D.T. (1980). The contingency theory of management accounting: Achievement and prognosis. Accounting, Organizations and Society, 5(4), 413–428.https://doi.org/10.1016/0361-3682(80)90040-9
Putri, VA, Junjunan, MI, & Jannah, BS (2025). Evaluation of the implementation of internal control systems on the quality of financial reports of KPP Customs and Excise X. Indonesian Public Accounting Journal, 3(1), 21–34.
Rahmawati, E., Sonita, S., Kholid, AWN, & Sofyani, H. (2022). Human resource competency and the quality of local government financial reports: The role of internal control systems as a mediator. Journal of Accounting and Finance Reviews, 12(2), 346–359.https://doi.org/10.22219/jrak.v12i2.21791
Ratmasari, DI, Yuliani, NL, & Purwantini, AH (2021). The quality of BUMDes financial reports and the factors that influence them. Borobudur Accounting Review, 1(1), 66–77.https://doi.org/10.31603/bacr.4892
Sasmita, S., & Zulvia, D. (2023). The influence of internal control systems and information technology on the quality of financial reports of the Community and Village Empowerment Service of West Sumatra Province. Journal of Management and Economic Research, 1(3), 54–72.https://doi.org/10.54066/jrime-itb.v1i3.271
Sidik, H. (2020). Enhancing the role of village-owned enterprises (BUMDes) as drivers of the rural economy in Langensari Village. Journal of Community Service, 4(1), 21–30.
Sinarwati, NK, & Prayudi, MA (2021). Performance of village-owned enterprises and their contribution to village original income. Journal of Social Sciences and Humanities, 10(3), 505–514.https://doi.org/10.23887/jish-undiksha.v10i3.37931
Sitawati, R., Sa'adah, K., & Subchan. (2020). The influence of human resource competency and internal control systems on the quality of financial report information with the moderation of information technology utilization. Indonesian Accounting Research Journal, 5(2), 91–107.
Sugiyono. (2021). Quantitative, qualitative, and R&D research methods. Alphabet
Published
2026-05-03
How to Cite
Rika Safitri, Lusi Elviani Rangkuti, & Mas’ut. (2026). The Influence Of Internal Control Systems And Managerial Competence On The Quality Of Bumdes Financial Reports With Information Technology As A Moderating Variable (study in Karo Regency). International Journal of Economics, Business and Innovation Research, 5(03), 1229- 1246. https://doi.org/10.63922/ijebir.v5i03.3340
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