I Gusti Bagus Surya Negara  
(Economics Faculty, Sriwijaya University, Indonesia)

Abstract: The financial statements are the means of delivering information concerning the activities of the organization of government financial management. The financial statements which can transmit the information to the public with accurate, timely, transparent and accountable, then the rate will be high quality financial statements. Periodic financial statements of the local government will be audited by the Audit Board. The results of this audit will be issued opinion by the Supreme Audit Agency. Audit Board’s opinion describes the level of fairness of financial statements in accordance with the local authorities the Government Accounting Standards.

This research was conducted in the form of a literature study that examines the commitment of regional heads, government internal control and financial accounting information systems area will affect the quality of the financial statements of local government in Indonesia. With the high commitment of local leaders in following up the previous year audit findings and increase the competence of human resources associated with the financial management of the area so that the level of understanding of the human resources of government accounting standards, the better, internal control systems are getting better government and financial accounting information system area the better it will boost the quality of local government financial reports that are accountable local leaders in the area of financial management.

Key words: commitment; government accounting standards; internal control; quality of local government financial reporting

JEL codes: H11, H83, M41, M48