THE INFLUENCE OF EDUCATION LEVEL, USE OF INFORMATION

TECHNOLOGY, AND UNDERSTANDING OF ACCRUAL

ACCOUNTING ON THE QUALITY OF FINANCIAL REPORTING IN
SKPD IN SOUTH ACEH REGENCY

Muhammad Erlita1
Darwanis2
Muhammad Arfan3*
1
Master of Accounting, Faculty of Economics and Business, Syiah Kuala
University, Banda Aceh
, Economic and Business Faculty, Syiah Kuala University, Banda Aceh
2 3

*Correspondence Author: erlita786@gmail.com

Abstract
This study aims to examine the effect of education level, use of information
technology, and understanding of accrual accounting on the quality of financial
reporting in the Regional Government Work Units (SKPD) in the South Aceh
Regency. The population of this study is 38 SKPDs in South Aceh Regency.
Because the number of population elements is not large, only 38 SKPDs, all
elements of the population are studied. Therefore, this study uses the census
method. Furthermore, this study uses primary data sources by distributing
questionnaires to each respondent and then asking them to fill them out. Each
SKPD is asked two persons as respondents, namely the budget user official and
the financial administration official. According to the number of respondents, 76
questionnaires were circulated and 72 were returned (95%). To analyze the data,
this study uses multiple linear regression analysis. The results showed that the
level of education, use of information technology, and comprehension of accrual
accounting affected the quality of financial reporting at SKPD in the South Aceh
district.
Keywords: Education level, use of information technology, comprehension of
accrual accounting, quality of financial reporting.

INTRODUCTION
One form of public accountability of local governments to the people is
the accountability of the performance of regional budget management in the form
of submitting reports on the accountability of the implementation of the Regional
Revenue and Expenditure Budget (APBD) every year to the District People's
Representative Council (DPRK) and the Financial Examination Agency (BPK) to
be examined and users of other financial statements according to their respective
needs. The financial statements reported in principle must refer to Government
Accounting Standards (SAP) and this has been regulated in Government
Regulation Number 71 of 2010 so that all information contained in the financial
statements is easier to understand.
 According to Law Number 32 of 2004 related to Local Government, the
Regional Work Apparatus Unit (SKPD) is all implementers with executive
functions so that the administration of government runs as it should. Qanun Aceh
Selatan Number 7 of 2016 states that the District Apparatus Work Unit (SKPD) is
a regional apparatus that is an element of the Regent and the Regional People's
Representative Council in the implementation of government affairs which is the
authority of the Regency Region. SKPD as an accounting entity prepares financial
statements for one budget period and is submitted to regional heads through the
Regional Financial Administration Officer (PPKD) as a reporting entity to be
consolidated into LKPD, this is intended as a form of responsibility for the
implementation of the regional revenue and expenditure budget.
Based on Law Number 17 of 2003, state finance has explained the duties
and responsibilities of local governments in carrying out financial publications for
each period for those who have an interest in the form of financial statements.
This is because the financial statements have information that will be considered
or the basis for the parties who will make decisions. Thus, the information
contained in the financial statements must be nexible and easy to understand. So
to realize good governance, it must be supported by good financial statements as
well. However, what happened to local governments such as South Aceh Regency
contained in the Examination Results Report of the Financial Examination
Agency (LHP BPK) of the Republic of Indonesia, Aceh Representative, it is
known that the financial report that existed in 2015mentioned that the presentation
of the value of fixed assets in the balance sheet is not supported by adequate
details of fixed assets, the Accounting policy of the South Aceh Regency
Government has not fully supported the application of accrual-based accounting
and there are still violations of laws and regulations.
In carrying out their duties in the SKPD, each member should have a good
understanding of financial statements and an educational background in
accounting and finance. Muzaid (2014) explained that formal education for each
financial staff will be very helpful and easier in carrying out their duties and
functions for every job given, especially in making financial reports. The results
of research by Nazaruddin et al. (2014) explained that the level of education
greatly influences a staff in submitting financial statements promptly. In addition,
Wiraputra et al. (2014) also explained that the level of education has a positive
influence on the preparation and presentation of financial reporting. (Devi, et al.,
2017)also said and clarified the issue of the quality of financial statements
affected by one's education. The results of shelly's research, & Tri Maulia (2014)
explained that the quality of financial statements is not directly influenced by the
level of education.
In addition, the role of information technology is also very helpful in the
accounting process of local governments or other organizations, where technology
has a great influence in producing quality financial reports. The use of technology
in the field of accounting and financial affairs greatly facilitates and eases the
workload, so the use of technology is considered to shorten the time of work and
is efficient. Information technology is defined as a software design that can be
used in collecting, processing, and producing the desired data. Research results of
Efendi et al. (2017) show the quality of financial statements cannot be separated
from the use of technology, and research by Murina&Rahmawaty (2017) states
that the use of information technology affects the quality of financial reporting.
Selanjuntya Devi et al. (2017). also mentioned that information technology
affects the quality of financial reporting. Meanwhile, (Setyowati, et al., 2016)
explained that financial and technological reports do not correlate.
In addition to the level of education and the use of information technology,
understanding accrual accounting also affects the quality of regional financial
reporting (Kiranayanti&Erawati, 2016). Accrual-based accounting understanding
shows the extent to which a person's understanding in designing and completing
all work related to accounting is like making financial statements based on
established standards.
The results of the research of Nazaruddin et al. (2014) explained financial
reports where the quality of the report is influenced by a person's understanding of
accounting. Then Wiraputra et al. (2014) found and explained how the
presentation of financial statements is influenced by a person's understanding of
the applicable provisions and regulations. Kiranayanti et al. (2016) finding an
understanding of the rules and regulations has a positive relationship with the
quality of financial reporting. Furthermore, Sari et al (2014) also stated the same
thing that the quality of financial statements is closely related to understanding the
accounting system. Meanwhile, Nurhasanah (2019) explained that the quality of
financial statements is not influenced by the understanding of accrual accounting.
Based on these problems, the author is motivated to analyze the influence
of education level, use of information technology, and understanding of accrual
accounting on the quality of financial reporting in the SKPD of South Aceh
Regency. The next section of the article covers the theoretical framework and
hypotheses, research methods, results and discussions, conclusions, limitations,
and suggestions.

LITERATURE REVIEW AND HYPOTHESES

Quality of Financial Reporting
The financial statements that have been determined by the government
include a draft financial report for one period carried out by the government as a
form of its responsibility for the Regional Revenue and Expenditure Budget, this
problem has been stated in Government Regulation Number 71 of 2010. The
financial statements prepared must be under the established principles, namely
based on Government Accounting Standards (SAP), so that the reported financial
statements can be used and utilized by interested parties.
Based on PP No. 71 of 2010, in detail, the financial structure and
transactions in reporting entities are part of the government which includes
accounting entities that compile accountability reporting (financial statements).
For the quality of financial reporting to be maintained, both at the local
government level and the SKPD level, the reporting must meet the qualitative
characteristics that have been determined. As for the qualitative characteristics in
question, that is, the normative amount compiled in the accounting information.
The quality of financial statements must have several characteristics, namely: (a)
have a clear linkage or relevance, (b) be reliable based on facts (c) are
comparable, and (d) understandable.

Education Level
According to Willis (2011), education has a linkage between people in
creating an effective life as well as experiences. Through education, human beings
are stimulated to think to appreciate, and do. The higher the education the higher
the creativity. Indonesian Republic Law Number 20 of 2003 concerning National
Education, article 1 explains how education can change and hone existing
potential and capabilities for the better with the learning process.
The education of regional financial management officials is an indicator of
the level of formal education that can be explained or subdued with a formal
diploma (Nazir, 2009). A formal diploma is a statement in the form of a letter
explaining that a person has completed formal education in the sense of having the
ability or expertise in a certain field. The level of education reflects the
intellectuality of a person. Each SKPD is certainly required to have an adequate
understanding of carrying out its duties and functions, this can be seen from the
level of education it has, especially in the field of accounting and finance.
Indicators of the level of education are insight and knowledge, ability,
understanding, needs, benefits, and sensitivity to change (Willis, 2011).

Use of Information Technology

The use of information technology includes processing data and
information, storing and disseminating it so that higher quality data is obtained.
(Rahmawati, 2018). This technology utilizes computer devices in running
software that aims to receive, process, and produce data and can be accessed in
networks between computers (Roviyantie, 2012). Information technology is a
manifestation of a program that can facilitate work in this case communicating,
obtaining, processing, and sharing every information that exists. Based on PP No.
56 of 2005, it is explained that all regional obligations in improving and
developing capabilities in managing finances.
The information technology used includes several things, namely (a)
processing data or information, management carried out with digital computing.
(b) The application of technology facilitates and reduces costs for public services
to be accessible to the public. (Hamzah. A, 2009).
Davis (1989) cited Suhaili (2004) that the use of information technology in
work is believed to be able to notify the predation and results of a person's work in
carrying out their duties and functions. The use of information technology in the
work becomes an individual decision in supporting work so that it can provide
higher quality work results. Indicators of the utilization of information technology
in this study include:(a) a faster work process; (b) more consistent work; (c) on
time; and (d) reliability.

Understanding Accrual Accounting

It is necessary to prepare resources so that the transformation process
towards accrual accounting is more reliable. Accrual base accounting as
concluded by the Government Accounting Standards Committee (KSAP) is the
basis for economic transactions that can be acknowledged, stored, and presented
in financial statements when transactions occur. The phenomenon in
organizations, some parties with certain interests cannot understand well about
accounting and evaluate and utilize and analyze those in financial-related reports
(Mahmudi 2010). The government has established Government Regulation
Number 71 of 2010 concerning accrual-based SAP which has been effective since
2015. Therefore, preparing financial statements at the level of local governments
and units below (SKPD)must be able to understand accrual-based SAP. An
understanding of accrual-based accounting means a person who has an
understanding of how to understand accounting to compile financial reporting
under established standards. Indicators of understanding accrual accounting
include understanding in preparing reports on budget realization, operations,
changes in equity, and balance sheets, as well as understanding in making records
of these reports (Permendagri Number 64 of 2013).

Education Level and Quality of Financial Reporting

Education is important and the basis of a person's knowledge in supporting
a career in a certain field. The knowledge gained from education indicates that a
person already has knowledge, expertise or qualified abilities in their field, based
on Law No. 20 of 2003it is known that education exists because of efforts by a
person in a conscious state in the learning process so that it can increase the
potential in himself.
In preparing quality financial reports in the public sector, reliable
accountants are needed as policy implementers and as policy determinants
(Nazier, 2009). The results of the examination of the Financial Examination
Agency (BPK) showed that there were problems with the financial management
of local governments that had not been properly organized due to the minimal
level of financial management education. The majority of financial managers in
local governments are carried out to produce financial reports whose quality is
still questionable. This happens because financial reporting is done by staff who
are inexperienced or do not have an accounting education background in the field
of finance.
The results of research by Nazaruddin et al. (2014) explained that
education positively affects the delivery of financial reporting promptly. In
addition, (Wiraputra, et al., 2014) explained about education positively affects the
financial statements prepared. This is supported by the research of Devi et al.
(2017) explains the quality of financial statements related to the level of
education. Thus, from the presentation of the theory, a research hypothesis was
proposed:
Hypothesis 1: The level of education positively affects the quality of financial
reporting

Use of Information Technology and Quality of Financial Reporting

Information technology is related to the acquisition, preparation,
processing, and dissemination of data so that the quality of the data produced is
better. Information technology can function to receive software input, process
incoming data to become information and organize information into reporting that
is understood by users, store and retrace the data and carry out transformation to
other parts in need. PP No. 56 of 2005 explains technology and information
including computers, databases, software, and other related types. Information
technology is defined as a set of technologies that can facilitate the activities of its
users in communicating, obtaining, processing, and sharing all existing
information. The development and use of technology within local governments
are very important for better financial management.
The results of research by Efendi et al. (2017) and Murina&Rahmawaty
(2017) show that the quality of financial reporting is positively influenced by
information technology. Based on the theoretical framework, the hypotheses of
this study are:
Hypothesis 2: The use of information technology has a positive effect on the
quality of financial reporting

Understanding Accrual Accounting and Financial Reporting Quality

Understanding accounting is related to how far the level of understanding
in theory and practice is in the field of accounting. In-depth, public sector
accounting systems and procedures, standards, and policies need to be further
studied, and one must understand the components of financial reporting in each
entity, namely the accounting entity or reporting entity. The transformation of the
accounting base to the accrual base that previously used the cash base has a real
impact on the financial reporting system of local governments so a clear
understanding of the regulations that regulate it is needed. Widjajarso (2011)
explained that the use of the accrual base has several advantages compared to cash
base accounting, especially in the government sector. In accrual-based accounting,
the information presented is more comprehensive such as the write-off of debts
that do not influence cash-based reporting, meanwhile, the shortcomings of cash-
based accounting are numerous, such as not being able to present information in
more detail about accounts receivable in making economic decisions, not being
able to expose actual and reliable operating costs.
PP No. 71 of 2010 requires regions to prepare financial reporting that is
relevant, reliable, comparable, and understandable. Regarding this matter, it is
very necessary to have a broad and deep understanding of accrual base accounting
in compiling and presenting financial-related reports, especially to local
governments.
Nazaruddin (2014) explained that understanding accounting can affect the
quality of financial statements. (Wiraputra, et al., 2014) found that the
presentation of financial statements was also influenced by the level of
understanding of accounting. Furthermore, Kiranayanti&Erawati (2016) found
that the quality of financial reporting is strongly influenced by an understanding
of the regulations that apply to the government. The results of the study were
strengthened by the findings of Sari et al. (2014), explaining that understanding
the accounting system influences the quality of financial reporting. Based on the
theoretical framework, this research hypothesis is:
Hypothesis 3: Understanding accrual accounting positively affects the quality of
financial reporting

RESEARCH METHODS
The study conducted hypothesis testing quantitatively. The unit of analysis
is SKPD in the south Aceh regency government. This study has a population of 38
SKPD. From each SKPD, 2 (two) State Civil Apparatus (ASN) were taken as
respondents, namely the Head of The Service/Agency/Office/Secretariat as the
budget user and the Financial Administration Officer (PPK SKPD) from each
SKPD unit in South Aceh Regency, so that the respondents used in this study
amounted to 38 SKPD x 2 people = 76 respondents. The research data is sourced
from the primary data from the distribution of questionnaires to respondents and
asks respondents to fill them out. After that, the data obtained will be analyzed
and processed by linear regression analysis.

Operationalization of Variables
Education Level (X1)
Education is a human effort to mature the soul to a higher level
(Hasbullah, 2011). Education has the task of preparing human resources to carry
out a development (Basrowi&Suwandi 2010). The level of education describes
how high a person's knowledge and intellectuality are, for example, someone who
has an education in the field of accounting and finance certainly has a strong
understanding of carrying out their duties and functions in the field of finance.
SKPD staff certainly have a basis that must be quite adequate in the field of
finance which can be seen from their educational background. Indicators in
measuring the level of education are (1) Knowledge insights; (2) Ability; (3)
Understanding; (4) As needed; (5) Benefits; and (6) Sensitive to change (Willis,
2011). In this study, education level measurements were used using a Likert scale
in 5-point intervals.

Use of Information Technology (X2)

The use and use of information technology greatly facilitate and helps
human work, including in the field of finance in carrying out tasks related to
accounting. The use of information technology is the level of information
technology integration that makes a person more confident in the results of his
work. Jurnali&Supomo (2002)explained that the use of information technology in
accounting tasks includes several components, namely, (a) processing information
or data, using a management system that in its application is not carried out
manually, and (b) the use of information technology, it can improve the
performance of public services that can be easily accessed by the public (Hamzah,
2009). The indicators related to the use of information technology include: (a)
consistency, (b) goals, (c) expertise, and (d) speed (Adriani 2010). This research
uses an interval scale, which is a Likert scale with five points.

Understanding Accrual Accounting (X3)

 The understanding of accrual-based accounting shows how all transactions
that occur are validated, obtained, and inputted in financial statements when the
transaction occurs, regardless of the time when cash or equivalents are received
(Government Regulation Number 71 of 2010). Indicators of understanding accrual
accounting are(a) financial reporting is prepared with the available time; (b) the
financial statements that have been prepared are of good quality; (c) prepare
reporting on budget realizations; (d) prepare operational reporting; (e) prepare to
report on changes in equity; (f) drawing up a balance sheet; and (g) financial
statement records made based on Permendagri No. 64 of 2013. This research uses
an interval scale, which is a Likert scale with five points.

Quality of Financial Reporting (Y)

Financial reporting by local governments in several ways will be used as
one of the foundations in making decisions. Thus, all existing information must be
under existing provisions so that parties in need can use the financial statements to
the maximum (Nurillah, 2014). This is because data or all forms of information in
financial statements are considered by interested parties in making decisions.
Thus, local governments should make financial reports with appropriate
provisions (Husna &Fadhilla, 2013). The indicators used are (1) Profits or
benefits obtained from financial statements;(2) Timing provisions in making
financial reporting; (3) Completeness or detail of the data presented in the
financial statements; (4) Honesty of the information contained in the financial
statements; (5) The data on the financial statements can be proven or verified to
be correct; (6) The data on the financial statements can be compared; and (7)
Accuracy and clarity of the data provided (Firdaus, 2015). This study used an
interval scale, namely a Likert scale with five points.

Analysis Methods
The testing approach in this study is quantitative because the data in this
study is in the form of numbers. In quantitative research, testing is carried out on a
theory related to various variables to be studied and involves data in the form of
numbers and reasoning(Arikunto, 2002). The analysis method used in this study is
multiple linear regression. The multiple regression model in this study in
conducting hypothesis tests:

Y1= α + β1 X1 + β2 X2 + β3 X3 + Ɛ1

Information:
Y1 = Quality of Financial Statements
X1 = Education
X2 = Utilization of information technology
X3 = Understanding accrual accounting
α = Constants
β = Regression coefficient and
Ɛ = error term
 The initial stage is carried out validity and reliability testing, after which
multiple linear regression tests are also carried out. The test is useful to find out
the suitability of the measuring instruments used and also to find out the extent to
which the data collected is consistent or not.

RESULTS AND DISCUSSION

The study was conducted on the District Apparatus Work Unit (SKPD) of
South Aceh Regency which amounted to 38 SKPD. Each SKPD was asked by two
people as respondents, namely the head of the service and the financial
administration official (PPK). The questionnaires were distributed to as many as
76 questionnaires for 38 SKPD or 76 respondents. Of the 76 questionnaires
distributed, 72 questionnaires (36 SKPD) or 95% were returned.

Testing of Research Instruments

Validity Test Results
Using the analysis of validity test items, the correlation of the item score to
the total score is calculated. Items that meet the existing criteria will be reviewed
further. The criteria conditions of the item in question if the value is large:
a. Correlation efficiency r >0.30, categorized as valid.
b. The correlation coefficient r <0.30, categorized as invalid.

More detailed validity test results are described in Table 1.

Table 1 Validity Test Results
Critical
Correlatio Value
Question No. Variable n 5% Information
Coefficient
(n=72)
1 X1.1 0,578 0,229 Valid
2 X1.2 0,623 0,229 Valid
3 X1.3 Education 0,716 0,229 Valid
4 X1.4 Level 0,631 0,229 Valid
5 X1.5 0,664 0,229 Valid
6 X1.6 0,636 0,229 Valid
1 X2.1 0,589 0,229 Valid
2 X2.2 0,614 0,229 Valid
3 X2.3 0,759 0,229 Valid
X2.4 Utilization of 0,669 Valid
4 0,229
Information
5 X2.5 Technology 0,729 0,229 Valid
6 X2.6 0,732 0,229 Valid
7 X2.7 0,518 0,229 Valid
8 X2.8 0,492 0,229 Valid
1 X3.1 Understanding 0,679 0,229 Valid
2 X3.2 Accrual 0,819 0,229 Valid
 3 X3.3 0,856 0,229 Valid
4 X3.4 0,881 0,229 Valid
5 X3.5 0,890 0,229 Valid
Accounting
6 X3.6 0,854 0,229 Valid
7 X3.7 0,875 0,229 Valid
1 Y1 0,738 0,229 Valid
2 Y2 0,746 0,229 Valid
3 Y3 0,758 0,229 Valid
Y4 Quality of 0,799 Valid
4 0,229
Financial
5 Y5 0,734 0,229 Valid
Reporting
6 Y6 0,661 0,229 Valid
7 Y7 0,686 0,229 Valid
8 Y8 0,769 0,229 Valid
Source: SPSS output version 25, 2020.

Reliability Test
If all existing statements have been declared valid, a reliability test can be
carried out to see the consistency of the results obtained. Statistically, reliability
tests involve Cronbach's alpha in spss programs. If Cronbach's alpha >0.60 then
the instrument is declared reliable. In more detail, the results of the reliability test
are found in Table 2.

Table 2 Reliability Test Results

Numbe
No Variable Average r of Alpha Reliability
Items Value
1 Education Level 4,3 6  0,784 Reliable
2 Use of information technology 4,4 8  0,702 Reliable
3 Understanding accrual accounting 4,3 7  0,769 Reliable
4 Quality of financial statements 4,1 8  0,776 Reliable
Source: SPSS output, 2020.

Test of Classical Assumptions

Normality Test
In statistics, it is necessary to know the normality of the data obtained.
Regression methods should use distributed or close data so that they can be
continued for other statistical tests. The normality test, it uses the Kolmogorov-
Smirnov test. The accuracy of the normality testing in this study is based on the
provisions:
a. The magnitude of the probability value > 0.05 is categorized as normally
distributed.
b. The magnitude of the probability value < 0.05 is categorized as abnormal.
The results of the normality test are described in Table 3.
Table 3 Normality Test Results

It is known from the normality test of the Kolmogorov-Smirnov Test One-

Sample with a significance of 0.20 > 0.05. Thus, there is a residual variable that is
feasible because it is normally distributed.
Multicollinearity Test
To be free from multicollinearity, the tolerance value should not be too far
from the value of 1. The variance inflation factor (VIF) limit is 10, and the VIF
<10 indicates the absence of multicollinearity (Gujarati, 2012). The results of the
multicollinearity test are contained in the data in Table 4.
Coefficients
Collinearity Statistics
Model Tolerance VIEW
1 (Constant)
Education Level .605 1.654
Use of Information Technology .457 2.188
Understanding Accrual Accounting .637 1.570
a. Dependent Variable: Quality of Financial Reporting

It is known that the magnitude of the VIF of each variable and < 10 and
the tolerance of each variable is close to 1.00. Thus, proving the absence of
multicollinearity.
Heterochemedasticity Test
The regression model should not give rise to heteroskedasticity.
Heteroskedasticity can be known from scatterplot graphs with a specific pattern.
The results of the heteroskedasticity test in detail are seen in Figure 1.
Figure 1 Heteroskedasticity Test Results
It is known that the scatterplot chart does not have the pattern in question,
and the points spread above and below the number 0 on the Y-axis. This can be
interpreted to mean that the variables used in this study did not indicate the
presence of symptoms of heteroskedasticity.

Descriptive Analysis
The descriptive analysis of this study for each variable was obtained from
respondents' answers to filling out the questionnaire variables, namely the level of
education (X_1), the use of information technology (X_2), understanding of
accrual accounting (X_3), and the quality of financial reporting (Y). The
descriptive statistical magnitude of each variable in this study is shown in table 5
data.

Tabel 5 StatistikDeskriptif
Variable N Minimum Maximum Mean Std.
Deviation
Quality of Financial Reporting 36 3,5 4,5 4,16 0,235
Education Level 36 2,8 5,0 4,10 0,396
Utilization of Information 36 1,7 5,0 3,85 0,578
Technology
Understanding Accrual 36 2,6 5,0 4,19 0,471
Accounting
valid(listwise) 36
Source: Primary Data Processed (2020)

It is known that the number of N is 36 SKPD. The application of accrual-

based accounting as a dependent variable has a mean or average value of 4.16
with a maximum value of 5.0 and a minimum value of 3.5 and a standard
deviation of 0.235. Furthermore, the quality of human resources which is an
independent variable has an average or mean of 4.10 from the highest value of 5.0
and there is a minimum value of 2.8 and a standard deviation of 0.396. Another
independent variable is an organizational commitment with an average of 3.85 a
maximum amount of 5.0 and a minimum of 1.7 and a standard deviation of 0.578.
The last independent variable is the use of information technology where the
average amount is 4.19 while the maximum amount is 5.0 and the minimum value
of 2.6 has a standard deviation of 0.471.

Hypothesis Testing Results

After testing the validity, reliability, and classical assumptions, the next
stage of hypothesis testing is carried out. The hypothesis was tested using multiple
linear regression analysis methods which can be seen in Table 6.
Table 6 Multiple Linear Regression Results
Coefficients
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta T Sig.
1 (Constant) 3.153 4.565 .691 .492
Education Level .221 .186 .146 1.191 .238
Use of Information .446 .181 .346 2.460 .016
Technology
Understanding Accrual .278 .142 .234 1.967 .053
Accounting
Source: SPSS output, 2020.

Based on Table 6, it can be seen that the results of the multiple linear
regression equation explaining the influence of educational level variables, the use
of information technology, and the understanding of accrual accounting on the
quality of financial reporting can be formulated as follows:

Y = 3.153 + 0.221X1 + 0.446X2 + 0.278X3 + e

The regression equation model means that the constant value of 3.153
means that if the level of education, the use of information technology, and the
understanding of accrual accounting are considered constant (unchanged), then
the quality level of financial reporting is 3.153 at intervals.
To see how much influence the independent variables together have on the
dependent variables shown in Table 7.
Table 7 Values of correlation coefficients (R) and values of coefficients of
determination (R²)
Model Summary
Adjusted R Std. The error in
Model R R Square Square the Estimate
1 .620a .384 .357 2.84635
a. Predictors: (Constant), Understanding Accrual Accounting, Education Level, Use of Information
Technology

It is known that (R²) which is 0.384 thus, the dependent variable is

influenced by an independent variable as high as 38.4% while the other 61.6% is
influenced by foreign variables that were not studied in this study.
Furthermore, significance tests are not required because this study is
census-based. Hypothesis testing is carried out by directly analyzing the value of
the regression coefficient from the results of population regression, provided that
if the value of the coefficient (βi) = 0, then the result has no effect, and if the
value of the coefficient ((βi) ≠ 0 then the result has an effect.
Based on Table 6, the value of the coefficient of the variable X1 (β1) =
0.221, where the value ≠ 0. thus, it is concluded that the level of education (X1)
affects the quality of financial reporting (Y). Since the coefficient value is
positively marked, it can also be stated that the level of education has a positive
influence on the quality of financial reporting. It can be interpreted as the higher
level of education of the apparatus of the accounting section or the preparation of
financial statements, the better the quality of financial reporting. Then, the value
of the variable coefficient X2 (β2) = 0.446, where the value ≠ 0. Thus, it can be
stated that the use of information technology (X2) also affects the quality of
financial reporting (Y). Because the coefficient value is positively marked, it can
also be stated that the use of information technology has a positive influence on
the quality of financial reporting. Thus, the expertise of the accounting apparatus
or the report preparation section is high finance or proficient in using information
technology, providing higher quality financial reporting results. Further, the value
of the coefficient of the variable X3 (β3) = 0.278, where the value ≠ 0. thus, it is
concluded that the understanding of accrual accounting (X3) affects the quality of
financial reporting (Y). Since its coefficient value is positively marked, it can also
be stated that the understanding of accrual accounting positive influence on the
quality of financial reporting. This can be interpreted to mean that the higher the
understanding of accrual accounting by the accounting apparatus, the financial
statements will certainly be of higher quality.

Discussion
The Effect of Education Level on the Quality of Financial Reporting

Based on the data, it is known that the quality of financial reporting is

also influenced by the level of education, where every increase in the level of
education, will be followed by an increase in the quality of financial reporting.
The higher level of education is accompanied by the high quality of financial
reporting produced by the accounting apparatus in each SKPD of South Aceh
Regency.
Education is considered important in the world of work, this is because
every job that exists requires certain skills and knowledge. So, it is very important
to deepen the field you want to master so that every workload given can be
completed easily and well. The education taken will greatly help a person in
developing his abilities so that he can become a better resource in the future.
Wungow, et al. (2016). Furthermore, Murina&Rahmawaty (2017) explained
education as an effort and an effort to obtain and increase knowledge directionally
and in a longer time.
This research has results that are in line with the research of
Murina&(Rahmawaty, et al., 2017), (Nazaruddin, et al., 2014), (Wiraputra, et al.,
2014), (Devi, et al., 2017) stated that the quality of financial reporting is
influenced by the level of education because without knowledge a person will not
have a maximal and quality financial report.

The Effect of The Use of Information Technology on the Quality of Financial

Reporting
Information technology greatly affects the quality of financial reporting.
Based on this, it shows that any increase in inexpertise in using information
technology will be followed by an increase in the quality of financial reporting.
Thus, the high expertise of the accounting apparatus in each SKPD of South Aceh
Regency in using information technology is certainly directly proportional to the
quality of the financial reporting produced.
PP No. 56 of 2005 explains information technology including computers,
databases, and other types including software that is still related to technology.
Information technology covers the whole aspect of human activity, The use of
technology can help and facilitate all activities carried out such as communication
in the distribution of information. With all the existing developments, it is
appropriate for local governments to carry out work transformations that utilize
technology in supporting and managing all work activities, especially in financial
matters.
Based on existing data, in line with the findings of (Rahmawati, et al.,
2018), (Sari, et al., 2014) followed (Efendi, et al., 2017), it is known that the use
of technology affects creating quality in financial reporting.

The Effect of Understanding Accrual Accounting on the Quality of Financial

Reporting
Based on the existing data, it is known that the understanding of accrual
accounting in the quality of financial reporting has a positive influence. Meaning
any increased understanding of accrual accounting is followed by an increase in
the quality of financial reporting. In the sense of a high understanding of the
accounting apparatus in each SKPD of south Aceh Regency for accrual
accounting, the quality of financial reporting will also increase.
Furthermore, if referring to PP No. 71 of 2010, requires regions to prepare
financial reporting with the best quality under the terms and conditions based on
Government Accounting Standards (SAP) which are the legal basis and must be
useful and easy to understand. In order for these four characteristics to be met, a
broad and deep understanding of accrual base accounting is needed in financial
reporting that is presented specifically to local governments.
Based on existing data, this is in line with the explanations (Nazaruddin, et
al., 2014), (Sari, et al., 2014), (Wiraputra, et al., 2014), and (Kiranayanti, et al.,
2016) which found positively the quality of financial reporting was influenced by
an adequate understanding of accounting. This means that the higher the
understanding of the accounting apparatus in each SKPD in South Aceh Regency,
the better the quality of the financial reporting produced.

CONCLUSIONS, LIMITATIONS, AND SUGGESTIONS

Conclusion
When viewed from the hypothesis testing that has been carried out, it is
concluded that the variables of education level, the use of information technology,
and the understanding of accrual accounting each have a positive influence on the
quality of SKPD financial reporting in South Aceh Regency.

Limitations
This research as a whole may not cover all SKPD in South Aceh Regency,
because there are some SKPD that do not return questionnaires. Data collection
uses questionnaire instruments without being guided and explained by the
researcher, thus allowing bias in filling out the questionnaire. The respondents in
this study totaled 72 people (36 SKPD) out of 76 respondents (38 SKPD) planned.
or 4 people (2 SKPD) who did not return their questionnaires and overall
independent variables affected the dependent variables based on the study only
explained about 38.4%.

Suggestion
It is hoped that the local government of South Aceh Regency will be able
to pay attention to various things that can control the quality of financial
reporting, so that regional financial reporting can be improved in quality by
increasing the level of education, increasing the use of technology and increasing
understanding of accrual accounting. It is also recommended for further research
to examine the SKPD of districts and cities in Aceh so that the results of the
research can be generalized to all districts and cities in Aceh or moreover to the
SKPD of regencies and cities in Indonesia. It is also recommended to the next
researcher that at the time of distribution of the questionnaire be able to provide
explanations or provide guidance in filling out a good questionnaire to the
respondents.

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