Digital accounting based on SAK-ETAP: financial reporting quality as a moderating variable

Abstract

Purpose: This study aims to determine whether the role of information technology and credit quantity influences the presentation of quality financial statements, with the understanding of SAK-ETAP as a moderating variable in creative businesses in Medan City. Methodology/approach: The data analysis method used is a reflective construct approach with the SmartPLS 3.0 application. Findings: The results show that the role of information technology significantly affects the presentation of quality financial statements, while credit quantity does not. The understanding of SAK-ETAP does not moderate the relationship between information technology and credit quantity with the quality of financial statement presentation. Practical and Theoretical contribution/Originality: UMKM need to recognize the importance of good record-keeping and reporting systems, which may require combining accounting training and the use of accounting software. Theoretically, this study enriches accounting literature by highlighting the limitations of SAK-ETAP understanding in moderating the relationship between credit and report quality, encouraging further research in this field. Research Limitation: This study's limitations include the variation in individuals' understanding of SAK-ETAP, with the majority of the sample having no knowledge of SAK-ETAP at all. This affected the research results, making it difficult for the researcher to consistently measure the impact of such understanding.

Keywords

• Credit Quantity
• Financial Statement Quality
• Information Technology
• SAK-ETAP