The Influence of the Effectiveness of Internal Control and Implementation of the Good Government Governance on Accounting Information Quality: A Case Study in Indonesian Local Government

Purpose: This study aims to prove the influence of the Effectiveness of Internal Control and the Implementation of Good Government Governance on Accounting Information Quality. Design/Approach/Methodology: This is a survey study on 288 internal audit officers and 241 financial management officials in local governments in Indonesia. The data analysis applied the Structural Equation Modeling approach with the use of statistical software Lisrel 8.8. Findings: The results of this study proved that the Effectiveness of Internal Control and the Implementation of Good Government Governance have a positive influence on Accounting Information Quality, where the Implementation of Good Government Governance has a greater impact than the Effectiveness of Internal Control. Practical Implication: Local governments that have implemented an effective internal control and good governance can record accounting information better so as to obtain high-quality accounting information. The implementation of good governance is indicated, among others, by the availability of an organizational structure and standard operational procedures for managing accounting information. Originality/Value: The originality of this study is to provide strong support as empirical evidence to the previous literature that the Effectiveness of Internal Control and the Implementation of Good Government Governance have a significant influence in achieving high-quality accounting information