A case study of village credit institution: Does Tri Hita Karana moderates the effect of internal control system on the quality of financial statements?

This study aims to determine the effect of the internal control system on the quality of financial statements with Tri Hita Karana Culture as a moderator. The population in this study were all Village Credit Institutions in Tabanan District, Indonesia. Sampling using purposive sampling method. The number of samples in this study were 71 respondents consisting of Panureksa, Pamucuk, Penyarikan, and Patengen. Data analysis using is Moderated Regression Analysis (MRA). The findings in this study are that the internal control system affects the quality of financial statements. Tri Hita Karana culture can strengthen the influence of the internal control system on the quality of financial statements. This research has theoretical implications, namely that the more adequate the internal control system carried out will cause the quality of financial reports to increase, especially in Village Credit Institutions that have implemented the Tri Hita Karana Culture as well as practical implications for improving the quality of financial reports and for future researchers.