THE EFFECT OF GOOD GOVERNANCE IMPLEMENTATION, GOVERNMENT ACCOUNTING STANDARDS, EFFECTIVENESS OF INTERNAL CONTROL SYSTEM AND HUMAN RESOURCE QUALITY ON THE QUALITY OF REGIONAL TASK FORCE FINANCIAL STATEMENTS

: The purpose of this research is examine the effect of implementation of Good Governance, Government Accounting Standards, Effectiveness of Internal Control System and Quality of Human Resources to the Quality of Financial Statements in the local municipality and regency (SKPD) Ambon, Maluku province. The population are 90 SKPD in the province of Maluku and each sample represented by one respondent. This research using quantitative approach, and data collection was done directly by using the questionnaire. Data were analyzed using Partial Least Square Equational Structural Models (PLS-SEM) with SmartPLS program. The results showed that the implementation of good governance, Government Accounting Standards, Quality of Human Resources positive significantly affect the Quality of Financial Statements Municipal area and the regency of Ambon, Maluku. Effectiveness of Internal Control System is not significant to the Quality of the Financial Statements in the local municipality and regency Ambon, Maluku.


Introduction
The financial management of the country is an activity that will affect the improvement of the welfare and prosperity of the people and people of Indonesia. The obligation of all agencies in both the central and local governments to compile financial statements as a form of accountability for state financial management. There are currently changes in the external environment related to the management of the country's finances, such changes include increasing public awareness to have a clean, accountable, and transparent government in managing the country's finances (Nuraeni, et al, 2012).
Local governments can organize government and development with their own regional capabilities. Therefore, the district is obliged to dig up its own financial resources based on the prevailing laws and regulations. In its development, this policy was updated with the release of Law No. 32 of 2004 and Law No. 33 of 2004 governing local government and financial balance between central government and local government. This policy presents the challenge of local governments to manage their resources efficiently and effectively in accordance with their respective regional capacities. As a result, this policy raises the readiness of different regions from one another given that the previous regional management system was still centralized. Haryanto, et al. (2007), explained that regional financial management is a subsystem of the state Third, governance is linked to current trends in public management literature, where multiorganizational relationships between key actors are involved in policy implications. In a broader sense governance is a network of performance between cross-vertical and horizontal organizations to achieve public goals.
Fourth, Governance in the context of public administration is thick with a system of public values. Governance implies something very important implying something validity is also something more dignified, something positive to achieve a public goal. Governance is seen as acceptance, more abstinive, more creative, more responsive and even more so.
In fact, governance in the field of state financial management is driven by aspects such as aspiration, decentralization, participation, justice, democratization, transparency, fairness and accountability and value for money. It is necessary to instill awareness to government officials and officials that the funds used in the implementation of government and public services are public funds which management bases economic principles, efficient and effective and accountable. The efficiency and effectiveness of state financial management includes planning, implementation and control/supervision. a. The Effect of Good Governance on The Quality of Financial Statements Research on the influence of good governance on the quality of financial reports has been conducted by previous researchers including Azlim, Darwanis, Usman Abu Bakar (2012) which resulted in Good governance affecting the quality of financial reports. Based on the above description, the research hypothesis is formulated as follows: H 1 : Good governance has a significant effect on the quality of financial statements b. The Effect of Government Accounting Standards on The Quality of Financial Statements According to Government Regulation No. 71 of 2010 on Government Accounting Standards (SAP) there is a related relationship between Government Accounting Standards and The Quality of Financial Statements, namely: "Government Accounting Standards, hereby called SAP, are accounting principles applied in compiling and presenting government financial statements. Thus SAP is a requirement that has the power of law in an effort to improve the quality of financial statements in Indonesia. Research on the influence of government accounting standards on the quality of financial reports has been conducted by previous researchers including Azlim, Darwanis, Usman Abu Bakar (2012), Susilawati, Dwi (2014), Stephen et al (2013), Kadek et al (2013) and Purwaniati Nugraheni and Imam Subaweh (2008 which resulted in government accounting standards affecting the quality of financial reports. Based on the above description, the research hypothesis is formulated as follows: H 2 : Accounting standard had a significant effect to financial statement quality c. Effect of Effectiveness of Internal Control System on The Quality of Financial Reports The purpose of the internal control system according to Warren et all (2005) one of them is to check the accuracy and reliability of accounting data. With accounting system, the risk of errors and misrepresentation or calculation can be minimized thus reducing the likelihood of local governments experiencing errors. One of the parts in the accounting information system that supports the smooth working of the accounting information system isinternal control influence between Internal Control System and Quality of Local Government Financial Report namely: "Internal control system includes various management tools aimed at achieving various broad objectives. The objectives are to ensure compliance with laws and regulations, ensure the reliability of financial statements and financial data, facilitate the efficiency and effectiveness of government operations. Research on the influence of internal control system on the quality of financial reports has been conducted by previous researchers including by Susilawati, Dwi Seftihani Riana (2014) and Widiastuti (2013) which resulted in the effectiveness of the internal control system affecting the quality of financial reports. Based on the above description, the research hypothesis is formulated as follows: H 3 : The effectiveness of the internal control system has a significant effect on the quality of financial statements d. The Effect of Human Resource Quality on The Quality of Financial Reports Human resources are human beings who work in the environment of an organization, humane potential as the driver of the organization in realizing its existence. According to Susilo (2002) human resources are the main buffer pillars as well as the engine drive of the organization in an effort to realize its vision and mission goals. The quality of human resources is measured by the ability of his knowledge reflected in his performance and seen from competent, fast and innovative behavior and a strong drive to learn. The above research shows that the relationship between HR policy and the quality of SKPD financial statements is more precise in establishing human resources in accordance with its competence will improve the quality of SKPD financial statements. Research on the influence of human resources on the quality of local government financial reports conducted by previous researchers including Kadek, Nyoman, Ni Kadek (2014), and Widiastuti (2013) which produced human resources had a significant positive effect on the quality of local government financial statements. H 4 : The Quality of Human Resources has a positive effect on the Quality of SKPD Financial Report

Research Methodology
The objects in this study are all institutions / institutions of regional task force in the city government and two districts in maluku province, namely as many as 140 SKPD. Consisting of 52 SKPD Ambon City, 44 SKPD Central Maluku regency and 44 SKPDs regency in western part. Sampling in this study uses purposive sampling techniques. The reason for sampling with purposive method aside (judgment sampling) is because it will only select samples that meet the selection criteria so that they can provide answers that can support the course of this research. The samples in this study were 90 SKPDs which consisted of 30 Ambon city SKPDs, 30 SKPDs of Central Maluku district and 30 SKPDs western district. The respondents in this study were the Office of Financial Administration of the Regional Task Force (PPK-SKPD).
Non-response bias testing is conducted with the the purpose to see if the characteristics of the answers given by participating respondents (returning questionnaires) with respondents who do not want to participate (non-response) are different. By determining the first responder returns the questionnaire before the return date with the last respondent returning the questionnaire before the questionnaire's return date, there is no significant difference between the two groups of respondents with the t-test. If the test shows insignificant results (p-value>0.05) then there is no difference between the two groups of respondents and vice versa. In this study, data analysis used the Partial Least Square (PLS) approach. PLS is a structural equation modelling (SEM) model based on components or variants. According to Ghozali (2006), PLS is an alternative approach that shifts from a covariarian-based SEM approach to a variant-based one. Covariarianbased SEM generally tests causality/theory whereas PLS is more predictive of models. PLS is a powerful method of analysis (Ghozali, 2006), as it is not based on many assumptions. For example, the data must be normal, the sample does not have to be large. In addition to being used to confirm the theory, PLS can also be used to explain the absence of relationships between latent variables. PLS can simultaneously analyze constructs formed with reflective and normative indicators.
The Inner Model (inner relation, structural model and substantive theory) describesthe relationship between latent variables based on substantive theory. Structural models are evaluated using R-square for dependent constructs, Stone-GeisserQ-square tests for predictive relevance and t tests as well as the significance of structural path parameter coefficients. In assessing the model with PLS begins by looking at R-square for each dependent latent variable. His achievements are the same as regression. Changes in the R-square value can be used to assess the effect of certain independent latent variables on dependent latent variables whether they have a substantive influence (Ghozali, 2006).
Convergent validityof the measurement model with reflective indicator model is assessed based on correlation between item score /component scoreand construct score calculated withPLS. Reflective size is said to be high if correlated more than 0.70 with the construct you want to measure. Another method to assess dicriminant validity is to compare the square root value of Average Variance Extracted (AVE) of each construct with the correlation between other constructs and models. If the AVE value of each construct is greater than the correlation value between the construct and the other construct in the model, then it is said to have a good discriminant validity.

Result of the research and Disucssion 4.1. Non Response Bias-Test
The non-response bias testing in this study was conducted with the aim of knowing the difference in response from respondents who return the first questionnaire in and the last entry. The non-response bias test was conducted with an independent sample t-test by looking at the average respondent's answer in the group of respondents who return the first questionnaire in and the last one entered. Significant differences between the population variances of both samples can be seen in levene's test for equality of variance..
From the results of the test with independent sample t-test shows: For respondents who return the first questionnaire in and the last to enter against the variable implementation of good governance, governmentaccounting standards, effectiveness of internal control system and human resource quality shows test results with t values of0.387, 0.096, 0.350, 0.088 and 0.861 greater than α = 0.05. This suggests that there was no difference in response between respondents who return the first questionnaire in and the last to enter. Thus no nonresponse bias was found..

Partial Least Square (PLS) Assessing the Outer Model or Measurement Model
There are three criteria in the use of data analysis techniques with SmartPLS to assess the outer model namely Convergent Validity, Discriminant Validity. And Composite Reability

Convergent Validity
Convergent validity of the measurement model with reflexive indicators is assessed based on the correlation between the estimated item score/component score with Sofware PLS. Individual reflexive measures are said to be high if correlated more than 0.70 with measured constructs. But according to Chin, the 1998(in Ghozali, 2006 for early-stage research of the development of a loading value measurement scale of 0.5 to 0.6 was considered sufficient. In this study will be used a loading limit factor of 0.6. The outer model value or correlation between the construct and the variable at first does not have convergen validity because there are still quite a lot of indicators that have a loading value factor below 0.60. Model modifications are made by removing indicators that have a value below 0.60. The modified model indicates that all loading factors have a value above 0.60, so the construct for all variables is no longer eliminated from the model. After the revision of the outer model test, it is obtained that all statement items are valid.

Discriminant validity
The outer model value or correlation between the construct and the variable at first does not have convergen validity because there are still quite a lot of indicators that have a loading value factor below 0.60. Model modifications are made by removing indicators that have a value below 0.60. The modified model indicates that all loading factors have a value above 0.60, so the construct for all variables is no longer eliminated from the model. After the revision of the outer model test, it is obtained that all statement items are valid Tabel 1. From table 1 it can be seen that some loading factor values for each indicator of each latent variable still have a loading factor value that is not greater than the loading value if associated with another variable. This means that each latin variable does not yet have a good discriminant validity where some latent variables still have a meter that is highly correlated with other constructs.

Composite Reliability dan Average Variance Extracted (AVE)
Validity and reliability criteria can also be seen from the reliability value of a construct and the Average variance Extracted (AVE) value of each construct. The construct is said to have a high reliability if the value is 0.70 and the AVE is above 0.50. In table 2 will be presented composite reliability and AVE values for the entire variable. Table 3. indicates that the obtained R-square value for the SKPD report quality variable is 0.818. This means that the quality of SKPD financial statements is explained by the variable implementation of good governance,government accountingstandards, effectiveness of interen control system and human resource quality of 81.8%. The results also show that the variable implementation of good governance,government accounting standards, effectiveness of interen control system and human resource quality is able to affect the quality of SKPD financial statements by 81.8% and 18.2% influenced by other variables.

Hypothesis Testing
Hypothesis testing and relationship between variables can be seen from the inner weight results on the model, here are the results of the path coefficient on the inner model: a. Hypothesis Testing 1 The result of the estimated inner weight on the effect of good governance on the quality of SKPD financial statements, obtained a t-statistics value of 2,885. The t-statistics score indicates greater than 1.96 for a 5% two-way test. The results show that the implementation of good governance has a significant effect on the quality of SKPD's financial statements. Thus the first hypothesis that states Good governance has a significant effect on the quality of financial statements, can be accepted. b. Hypothesis Testing 2 The estimated inner weight on the effect of government accounting standards on the quality of SKPD financial statements, obtained a t-statistics value of 5,766. The t-statistics score indicates greater than 1.96 for a 5% two-way test. The results show that the government's accounting standards have a significant impact on the quality of SKPD's financial statements.
Thus the second hypothesis that states government accounting standards have a significant effect on the quality of financial statements, can be accepted. c. Hypothesis Testing 3 The result of the estimated inner weight on the effect of the effectiveness of the interen control system on the quality of SKPD financial statements, obtained a t-statistics value of 0.756. The t-statistics score represents less than 1.96 for a 5% two-way test. The results showed that the effectiveness of the interen control system had no significant effect on the quality of SKPD's financial statements. Thus the third hypothesis stating the effectiveness of the interen control system has a significant effect on the quality of financial statements, is rejected d. Hypothesis Testing 4 The result of the estimated inner weight on the influence of human resource quality on the quality of SKPD financial report, obtained a t-statistics value of 0.855. The t-statistics score represents less than 1.96 for a 5% two-way test. These results show that the quality of human resources has no significant effect on the quality of SKPD's financial statements. Thus the fourth hypothesis that states the quality of human resources has a significant effect on the quality of financial statements, can be rejected.

a. The effect of good governance on the quality of SKPD financial statements
From the hypothetical test results, supporting the hypothesis that the application of good governance has a positive effect on the quality of SKPD financial statements, indicated by the results of research of 0.186 means that the better the application of good governance by SKPD ambon city government and two districts in maluku province then the better the quality of SKPD financial report. Also the effect of good governance on the quality of SKPD financial statements is significant, this can be seen from the t-statistical value of 2,885 which means greater than 1.96. This result indicates that the implementation of Good Governance in the Ambon city government SKPD and two districts in Maluku Province has been carried out in keeping with the principles of good management, such as transparency, accountability, participation, fairness, effectiveness and efficiency so that regional resources that are in government management actually achieve the most goals for the prosperity and progress of the people, because transparency and accountability of state financial management is the main foundation for the creation of. The results of this study support previous research conducted by Azlim, Darwanis, Usman (2012) whose research on the influence of good governance and accounting standards of government on the quality of financial information of SKPD in the city of Banda Aceh. From the results of the study shows that the implementation of good governance and accounting standards of the government positively affects the financial information of SKPD in The City of Banda Aceh.

b. The Effect of Government Accounting Standards on the Quality of SKPD Financial Statements
From the hypothetical test results, showed that the government accounting standards had a positive effect on the quality of SKPD financial statements, indicated by the results of the study of 0.675 meaning that the better the implementation of government accounting standards there will be an improvement in the quality of financial statements. The effect of the implementation of government accounting standards on the quality of SKPD financial statements is significant, this can be seen from the t-statistical value of 5,766 which means greater than 1.96. The results of this study support the research conducted by Azlim, Darwanis, Usman (2012), with the results of government accounting standards affecting the quality of financial information of SKPD, where the understanding and use of absolute government accounting standards is carried out so that the resulting financial statements are more qualified. and the results of this study are also in line with previous research conducted by Susilawati, Dwi (2014) with the results of the implementation of government accounting standards positively affecting the quality of the financial statements of the Ministry of Water and Environment of the Uganda Government. Similarly, kadek et al research (2014), which mentions that the implementation of government accounting standards has a significant effect on the quality of regional financial statements. The results of this study were also reinforced by the results of research conducted by Purwaniati Nugraheni and Imam Subaweh (2008) which stated that there are changes/differences in the results of quality financial statements after applying the Government accounting standards with before applying the Government Accounting Standards.

c. Effect of Effectiveness of Internal Control System on The Quality of SKPD Financial
Report From the hypothetical test results, shows that the effectiveness of the internal control system positively affects the quality of SKPD's financial statements by 0.067 and has no significant effect on the quality of SKPD's financial statements, this can be seen from the tstatistical value of 0.756 which shows smaller than 1.96. This means that the implementation of the internal control system by the local government is not able to improve the quality of its financial statements. This is due to the ineffectiveness of the internal control system, especially on the weaknesses of the accounting and reporting control system, the weakness of the control system of the implementation of revenue and expenditure budgets, and the weakness of the internal control structure. The results of this study do not support research conducted by Susilawati and Dwi (2014) who conducted research on government accounting standards and internal control system as an anthesthesis of the quality of financial statements, which states the internal control system has a significant effect on the quality of local government financial reports, which is the most influential in improving the internal control system namely the reliability of financial reporting. The results of this study are also not in line with previous research conducted by Widiastuti (2013) where test results showed that the internal control system had a positive effect on the quality of local government financial statements.

d. The Effect of Human Resource Quality on The Quality of SKPD Financial Report
From the hypothetical test results, shows that the quality of human resources has a positive effect on the quality of SKPD's financial statements by 0.080, and has no significant effect on the quality of SKPD's financial statements, this is seen in the t-statistical value of 0.855 which shows less than 1.96. Based on the results of this study, it can be known that the quality of human resources of the city and district governments in maluku province is not optimal, so there are still problems regarding education where there are still few employees who have the ability to make financial statements that are still there that are backgrounds other than accounting. And the problem of training where employees rarely attend training because the training implementation is not routine. The findings of this study are not in line with the results of Widiastuti research (2013), which shows that human resources have a positive effect on the Local Government Financial Report, where the better the capacity of human resources the better the quality of local government financial reports. And the results of this study also contradict the results of research conducted by Kadek, Nyoman, Ni kadek (2014), where the test results showed that human resource competency had a positive and significant effect on the quality of regional financial reports, but the fourth hypothesis stating the quality of human resources affects the quality of SKPD financial statements is not proven.

Conclusion and Suggestion 5.1. Conclusion
a. The implementation of good governance partially affects the quality of SKPD's financial statements. This means that the better the implementation of good governance, the better the quality of SKPD's financial statements will be. b. Government accounting standards partially affect the quality of SKPD's financial statements.
This means that the better the accounting standards of the government, the better the quality of SKPD's financial statements will be. c. The partial effectiveness of the interen control system has no significant effect on the quality of SKPD financialstatements. This means that the effectiveness of the interen control system is still weak on the accounting and reporting control system and on its internal control structure it does not affect the improvement of the quality of SKPD financial statements. d. The quality of human resources has no significant effect on the quality of SKPD financialstatements. This means that the quality of human resources is still not optimal due to the lack of training and still lack of employees who have the ability to make financial statements because there are still employees with backgrounds other than accounting in the city and district governments in maluku province so as to influence the quality of SKPD financial statements.