The Effect of Understanding of Accounting Standards and Internal Control Systems on the Quality of Financial Statements with the Application of Accounting Software as a Moderating Variable

ABSTRACT


INTRODUCTION
Micro, small, and medium enterprises (MSMEs) run in various fields. Businesses included in micro, small, and medium enterprises include trading, mining, industry, and education. Having financial reports in the MSME sector is very important because with good financial reports and according to the standards of small and medium entrepreneurs can find out profit and loss, accounts payable, and calculate taxes.
There are obstacles faced by MSME actors, namely related to preparing their financial reports [1], [2].
The weakness of MSMEs in preparing financial reports is due to a lack of understanding of Financial Accounting Standards (SAK), a lack of internal control systems, and training in preparing financial reports. Not only from that point of view, the application of accounting software helps support company operations. The existence of accounting software is considered to be able to reduce the amount of paper used to make a financial report if errors are detected [3]. Because the accountant only has to edit the wrong data, the data will be recalculated automatically to be used as a financial report. This means that the quality of financial reports is influenced by the understanding of

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accounting possessed by employees. In addition to being able to facilitate a job, it is necessary to use accounting software, and an internal control system is needed to prevent fraud and identify risks that might occur.
One form of this concern is using a computer-based Accounting Information System (accounting software) to expedite the flow of company information. Accounting software includes ACL, SAP, MYOB, Ms. Excel, Zahir Accounting, and Accurate. This software can speed up and provide more accurate data processing than manual, and all events can be traced more easily.

LITERATURE REVIEW
Accounting software is a program created to facilitate accounting activities and records [4]. All series of activities in accounting, such as selling, posting to ledgers, compiling trial balances, and financial reports, can be done through accounting programs. It can be said that the presence of this accounting software can cut the work of an accountant faster. There are various accounting software, including MYOB, Accurate, Ms. Excel (Spreadsheet), Daceasy Accounting (DEA), Peachtree, K-System Indonesia, Zahir Accounting, and others. Accounting software is software created to perform data processing. An application is software created as a frontend of a system that is used to process data so that it becomes valuable information for users [5]. In use, applications are divided into three types: web-based, desktop, and mobilebased [6].
Accounting software facilitates the internal control of MSMEs because every transaction can be monitored in real-time. Every transaction that occurs in the company is integrated with the accounting software used. Implementing accounting software for MSME players can save time because they no longer have to ask the accounting team directly, which will take a long time. With accounting software, data can be accessed in real-time and accurately to minimize errors in the accounting process.

Decision-Usefulness Theory
Decision-use theory covers the requirements of the quality of accounting information that is useful in decisions to be taken by users of accounting information. The decision-usefulness of accounting information contains components that need to be considered by the presenter of accounting information so that the existing coverage can meet the needs of the decisionmakers who will use it.
Decision-use theory's premises include accounting's objective to provide financial information about organizations for decision-making. The purpose of accounting is related to stakeholders, namely, providing financial information about an organization that will be used in making decisions.
Management's attitude towards applying accounting standards is related to its importance in disclosing accounting information that describes financial performance in financial reporting [7], [8]. The decision-use theory of accounting information is reflected in the form of rules that must be met by the components of financial reporting in order to be helpful in the framework of making economic decisions.

Accounting software strengthens the effect of accounting standards on the quality of financial reports
The application of accounting software makes it easier for MSME actors to carry out accounting activities and records [9]. All activities in accounting,

Accounting software strengthens the influence of the internal control system on the quality of financial reports
Accounting software facilitates the internal control of MSMEs because every transaction can be monitored in real-time. Every transaction that occurs in the company is integrated with the accounting software used [10]. Implementing accounting software for MSME players can save time because they no longer have to ask the accounting team directly, which will take a long time. With accounting software, data can be accessed in real-time and accurately to minimize errors in the accounting process. H2: Accounting software strengthens the influence of the internal control system on the quality of financial reports.

METHODS
This study uses primary data, namely data sources directly providing data to collectors-primary data collection by distributing questionnaires directly to MSME actors in DKI Jakarta. The dependent variable in this study is the quality of financial reports (Y), the independent variable is understanding of accounting standards and internal control systems (X), and the moderating variable in this study is the application of accounting software (Z). In this study, data were analyzed using a 4point Likert scale analysis.

Descriptive Statistic
The results of data analysis in this study consisted of descriptive statistics, validity test, reliability test, classic assumption test, multiple linear regression analysis, and hypothesis testing (coefficient of determination test, t-test, and F test). The results of descriptive statistics show the results in Table 1 as follows. Based on Table 1, the value distribution of the research variables consists of understanding accounting standards, internal control systems, quality of financial reports and application of accounting software. The table above shows that n in each valid variable is 96.

Validity Test
This test was carried out using the Pearson Correlation method, in other words the provisions of an instrument are said to be valid or valid if they have a significant value at the 0.05 level [11]. The following is a  Table 2 shows that the variable understanding of accounting standards consists of 4 questions, and all of these 4 questions are valid because the Pearson Correlation significance value is below 0.05 so that all question items can be used as research data.  Table 3 shows that the variable understanding of accounting standards consists of 5 questions, and all of these 5 questions are valid because the Pearson Correlation significance value is below 0.05 so that all question items can be used as research data.  Table 4 shows that the financial report quality variable consists of 4 questions, and all of these 4 questions are valid because the Pearson Correlation significance value is below 0.05 so that all question items can be used as research data.  Table 5 shows that the accounting software implementation variable consists of 5 questions, and all of these 5 questions are valid because the significance of the Pearson Correlation is below 0.05 so that all question items can be used as research data.

Reliability Test
Based on the results of reliability testing in this study using the Cronbach Alpha statistical test using SPSS 25 for Windows software. A questionnaire is said to be reliable or reliable if one's answers to statements are consistent from time to time Reliability measurement by looking at Cronbach alpha. A construct or variable can be said to be reliable if it gives a Cronbach alpha value > 0.60 [11]. The results of the reliability test can be seen in the following table:

Normality test
This test was conducted to test whether the regression model, the residual variable has a normal distribution. This test uses the normality test from Kolmogorov Smirnov with guidelines for decision making if the probability value is > 0.05 then the regression model meets the normality assumption [11]. The following is a table showing the results of the Normality Test: Based on the results of the normality test with Kolmogorov Smirnov, it can be seen that it fulfills the normality assumption because the probability value is 0.200 > 0.05.

Multicollinearity Test
The results of the research multicollinearity test serve to see whether there is a relationship between the independent variables in the study. The results of the multicollinearity test are shown in table 8 as follows: From table 8, regarding the results of the multicollinearity test, it was found that the three independent variables, namely understanding accounting standards, internal control systems, and application of accounting software, have a Tolerance value greater than 0.1 and a Variance Inflation Factor (VIF) less than 10. This means that no there are symptoms of a relationship between independent variables in the study.

Heteroscedasticity Test
Heteroscedasticity test is used to see whether the research sample used is homogeneous. Heteroscedasticity test uses the Rank Spearman method and the results can be seen in table 9 as follows: Based on the output above, it is known that the significance value (Sig.) for the variable understanding of accounting standards is 0.853, the internal control system is 0.900 and the application of accounting software is 0.658. Because the significance value of the variables above is greater than 0.05, it can be concluded that there are no symptoms of heteroscedasticity in the regression model.

Determination Coefficient Test (R 2 )
In the coefficient of multiple determination, the resulting value shows the magnitude of the influence of the variable understanding of accounting standards, internal control systems and the application of accounting software in influencing the variable quality of MSME financial reports in DKI Jakarta. The magnitude of the coefficient of multiple determination is shown in table 10 as follows. The correlation coefficient (R) value in the table is 0.571 indicating that the relationship between the independent variables and the dependent variable is strong because the correlation coefficient value is above 0.05.

F test
The F test was used to test the regression equation model in this study in the condition of goodness of fit, or fit (fit) to be interpreted. Research is said to have a fit model with the data it has if the probability value is <0.05 measured by the ANOVA test (Ghozali, 2011). The following are the results of the F test in the table: Based on the test results in Table 11, it shows that the significance value is 0.000 or in other words it is smaller than the probability value (p-value) of 0.05. Based on the results of the F test, it can be said that the regression equation model used in this study is fit and feasible to interpret.

t Test
The t test was conducted to determine the influence of each independent variable individually on the dependent variable. To find out whether there is an influence of each independent variable individually on the dependent variable, it is done by comparing the p-value in the Sig column. each -each independent variable with a significant level used 0.05. If the pvalue is less than 0.05, it can be said that the independent variables partially have an influence on the dependent variable [12]. The results of the t test can be seen in the following table: Based on table 13, it can be described the effect of applying accounting software to the quality of financial reports. The accounting software application variable has a significance value of 0.008 and 0.015 or less than 0.005 for each independent variable. It can be said that the hypothesis is accepted so that it can be said that the application of accounting software strengthens the influence of understanding accounting standards and internal control systems on the quality of financial reports.

CONCLUSION
The results and discussion in the previous section show that improving the quality of financial reports requires an understanding of accounting standards, internal control systems, and the application of accounting software. For MSMEs The Es Accounting and Finance (ESAF)  Vol. 1, No. 03, July 2023: pp. 135~142 141 themselves, the internal control that is carried out is not as reasonable as large-level businesses because its management system is still simple. The owners carry out direct supervision because most also act as business operators. So that all directives and direct supervision are carried out by the owner and determine the quality of the financial reports that will be presented in each period.
The application of accounting software is something that MSME owners must consider in preparing financial reports. Accounting software in preparing financial reports will provide results or quality financial reports that can be adequately understood and used according to the owner's needs.