THE EFFECTIVENESS OF ACCOUNTING INFORMATION SYSTEMS AND GOVERNMENT ACCOUNTING STANDARDS ON THE QUALITY OF FINANCIAL STATEMENTS CODING ORGANIZATIONAL COMMITMENTS

Abstract

Small and medium-sized firms (SMEs) in Indonesia survive despite poor quality and errors in their financial accounts. The quality financial statement assists stakeholders in understanding the position of the firm to make informed decisions. This study aims to assess the impact of accounting information systems and government accounting standards on the accuracy of financial statements coding organizational commitments in government owned SMEs of Indonesia. Data is collected from the employees of government owned SMEs of Indonesia. This study used the Partial Least Square (PLS) approach to examine the association between variables. The study's findings indicate that accounting information systems and government accounting standards contribute to the credibility of the financial statements' coding of organizational commitments. The research offers a substantial theoretical foundation to the body of knowledge describing the connection between the effectiveness of accounting information systems and government accounting rules and the accuracy of financial statements coding organizational commitments. The research's practical consequences would aid practitioners in improving the coding of organizational commitments in financial statements.