Financial Reporting Quality: The Mediating Role of Accounting Information Systems in Indonesia's Religious Affairs Ministry

Abstract

Purpose: This study aims to examine the effects of Human Resource Competence (HRC) and Top Management Support (TMS) on Financial Reporting Quality (FRQ), while investigating the mediating role of Accounting Information Systems (AIS) in the public sector context.Research Methodology: This study employed a quantitative approach using a survey method at the Ministry of Religious Affairs of Jambi Province, Indonesia. Primary data were collected through structured questionnaires distributed to financial management personnel. A total of 320 respondents were selected using purposive sampling, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS.Results: The findings show that HRC (β = 0.418) and TMS (β = 0.465) positively influence AIS. Furthermore, HRC (β = 0.283), TMS (β = 0.258), and AIS (β = 0.444) significantly improve FRQ, with AIS demonstrating the strongest direct effect. AIS also mediates the relationship between HRC and FRQ (β = 0.186) and between TMS and FRQ (β = 0.207).Conclusions: FRQ is enhanced when competent human resources and strong managerial support are integrated with effective AIS.Limitations: This study was limited to one public institution and focused only on four variables, restricting broader generalization.Contributions: This study extends FRQ literature by integrating Institutional Theory and Stakeholder Theory to explain AIS mediation and provides practical insights for strengthening public sector financial management.