Internal Control Systems and Financial Statement Quality: Evidence from Trading SMEs in South Tangerang, Indonesia
Keywords:
Internal Control Systems, Financial Statement Quality, MSMEs, Trading Sector, South TangerangAbstract
This study aims to examine the effect of internal control systems on the quality of financial statements among Micro, Small, and Medium Enterprises (MSMEs) in the trading sector in Bintaro, South Tangerang City. A quantitative research design with a survey approach was employed. The sample consisted of 50 MSME owners or managers selected using purposive sampling. Data were collected through a structured questionnaire that met validity and reliability requirements and were analyzed using classical assumption tests and simple linear regression. The results reveal that internal control systems have a positive and
significant effect on financial statement quality. This indicates that stronger implementation of internal control systems leads to more reliable, relevant, and accurate financial reporting. The findings highlight the importance of strengthening internal control practices to enhance financial accountability and support better decision-making among MSME.
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