Effect of Internal Control, Accountability, and Transparency of Financial Statements on the Financial Statements Quality (Case Study on Amil Zakat Institute of the Indonesian Zakat Initiative)

Abstract

Purpose: This study seeks to examine the impact of internal control, accountability, and transparency on the quality of financial statements. Methodology: Data for this study was primarily collected through questionnaires distributed to respondents. The questionnaires covered aspects of internal control, accountability, transparency, and financial statement quality. The study focused on the Amil Zakat Institute of the Indonesian Zakat Initiative as the population, and a purposive sampling method was used to select 35 samples. The research methodology involved descriptive statistical analysis, testing of classical assumptions, and multiple linear regression with subsequent hypothesis testing. Findings: The findings indicate that transparency has a positive and significant influence on the quality of financial statements. However, accountability and internal control factors do not demonstrate a significant impact on financial statement quality. Nevertheless, when considered together, the variables of internal control, accountability, and transparency do significantly affect the quality of financial statements. Implications: Financial statements will be useful to users if the information presented in these financial reports is understandable, relevant, reliable and comparable.

Keywords

• Internal Control
• Accountability
• Transparency
• Quality of financial statements