ABSTRACT
Reforms in the state treasury that there is a significant change in accounting
rule change. This evidenced by the issuance of government accounting standards under
PP.71 of 2010 on the application of accrual-based governmet accounting standards.
This requires a readiness to the implementation of accrual accounting can done well.
The variables in this test are the understanding of the accrual basis, the institution
readiness and the role of Internal Audit on the quality of the government report of
Balikpapan City. The methods of analysis used are validity test, reliability test and
multiple linear regression analyses.
In studied it was founds a partial variable understanding accrual base has a
dominant influence on the quality variables of the financial report of the Balikpapan
city government. While simultaneously variables understanding accrual bases, the
institution readiness variable and the internal audit role variables have a significant
influence on the quality variables of the financial report of the Balikpapan municipal
government
Keywords: Accrual Basis, Government, Quality of Financial Report, Understanding