The Influence of Internal Control Effectiveness and Accounting Information System Implementation on Financial Statement Accuracy

Abstract

The increasing use of information technology in organizations has emphasized the importance of producing accurate and reliable financial statements through effective accounting information systems and strong internal controls. In cooperatives, financial statement accuracy is essential for ensuring accountability, transparency, and sound decision-making. This study aims to examine the influence of internal control effectiveness and the implementation of accounting information systems on the accuracy of financial statements at Koperasi Pintu Air, Lewa District, East Sumba Regency. A quantitative research approach with a survey method was employed. The study involved all 36 board members and employees using a saturated sampling technique. Primary data were collected through questionnaires and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings indicate that internal control effectiveness has a positive and significant effect on financial statement accuracy (T = 3.287; p = 0.001). Likewise, the implementation of accounting information systems has a positive and significant effect on financial statement accuracy (T = 3.969; p < 0.001). These findings demonstrate that effective internal controls and well-implemented accounting information systems enhance the accuracy, reliability, and accountability of financial reporting in cooperatives and provide valuable insights for improving financial governance.