Accounting Knowledge and Internal Controls Affecting the Efficiency of Financial and Accounting Operations in the Department of Land Transport

Abstract

This research consists purposes were 1. to analyze the effect of accounting knowledge on the performance efficiency of financial and accounting operations and 2. to analyze the effect of internal control on the performance efficiency of financial and accounting operations. This study employed a quantitative research design. The research instrument was a structured questionnaire. The sample consisted of 217 civil servants and revolving fund employees of the Road Safety Fund, Department of Land Transport, who held positions as Finance and Accounting Academics and Finance and Accounting Officers. The sample was selected from a total population of 396 personnel using Taro Yamane's (1973) sample size determination formula with a 5% margin of error. The data collected through the questionnaires were analyzed using descriptive statistics, including percentage, mean and standard deviation. In addition, independent-samples t-test and one-way analysis of variance (ANOVA) were employed to compare differences among groups. The research findings revealed that 1) Accounting knowledge significantly influenced the performance efficiency of financial and accounting operations. Specifically, the accounting knowledge dimension had a positive effect on timeliness, work quality, and cost efficiency and cost-effectiveness at the 0.01 level of statistical significance. The information technology dimension positively affected timeliness, compliance with relevant regulations and legal requirements and cost efficiency and cost-effectiveness at the 0.05 level of statistical significance. Furthermore, the ethics dimension exerted a positive influence on compliance with relevant regulations and legal requirements, timeliness, work quality and cost efficiency and cost-effectiveness at the 0.01 level of statistical significance and 2) Internal control was also found to have a significant positive effect on the performance efficiency of financial and accounting operations. The control environment dimension positively influenced compliance with relevant regulations and legal requirements at the 0.01 level of statistical significance and timeliness at the 0.05 level of statistical significance. The risk assessment dimension had a positive effect on compliance with relevant regulations and legal requirements at the 0.01 level of statistical significance. The control activities dimension positively influenced work quality at the 0.01 level of statistical significance and cost efficiency and cost-effectiveness at the 0.05 level of statistical significance. In addition, the information and communication dimension demonstrated a positive effect on compliance with relevant regulations and legal requirements, timeliness, work quality and cost efficiency and cost-effectiveness, all at the 0.01 level of statistical significance. Finally, the monitoring and evaluation dimension positively affected compliance with relevant regulations and legal requirements, work quality and cost efficiency and cost-effectiveness at the 0.01 level of statistical significance.