Research Paper
Year: 2020 | Month: July | Volume: 7 | Issue: 7 | Pages: 17-30
Explanatory Study Related to the Impact of the COVID-19 Pandemic in the Implementation of Public Sector Accountability for Financial Reporting Quality from SKPD in North Sumatera Province, Indonesia
Ardhan Syahputra1, Dwi Saraswati2
1Universitas Muslim Nusantara Al Washliyah, Medan, North Sumatera, Indonesia
2Universitas Pembangunan Panca Budi, Medan, North Sumatera, Indonesia
Corresponding Author: Ardhan Syahputra
ABSTRACT
The present study aimed to identify and analyze (1) the impact of external pressure and environmental uncertainty on the quality of financial reporting. The population in the study was UPD North Sumatera's 99 employees and 87 participants were involved in accidental techniques. From the questionnaire and documentation study, the data were collected. The questionnaire was calculated by Structural Equation Modeling - PLS. The results of this study prove that the external pressure resulting from the COVID-19 pandemic has a significant effect on the quality of financial reporting. Increasingly, countries affected by Covid-19 pandemics such as America, Spain, and Italy have made the world economic situation worse. Although some international institutions predict the slowdown of the world economy, the International Monetary Fund (IMF) predicts that the global economy will grow minus 3%. These events indicate an external pressure on the quality of regional financial reporting in the future. It is expected that the local government will anticipate the impact of the COVID-19 pandemic, given that the outbreak is just beginning to spread in Indonesia in the second week of March 2020. The effect of the COVID-19 pandemic on environmental uncertainty has an impact on the quality of financial reporting. Specifically, the delivery performance of the TKDD through March 2020 has been influenced by another factor, namely the outbreak of the Covid-19 pandemic in other capital cities and regions of Indonesia. As a result, it has had an impact on the implementation of the distribution of TKD in other areas, due to the focus of the Central Government and the Local Government over the pandemic to date. Covid-19 pandemic outbreaks have an impact on the quality of financial reporting.
Keywords: COVID-19, External Pressure, Environmental Uncertainty, Financial Reporting Quality.
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