<![CDATA[The quality of local government financial statements is an indicator of public financial accountability; however, research on the effect of internal control systems on financial statement quality remains inconsistent. This study aims to analyze the effect of the control environment and control activities on financial statement quality, as well as the role of human resource competence as a moderating variable, in the Government of Papua Pegunungan Province as a newly established autonomous region. This study employed a quantitative approach using primary data from 32 respondents selected through purposive sampling across Regional Apparatus Organizations. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with WarpPLS 5.0 software. The results show that the control environment had no significant effect on financial statement quality (β = 0.034; p = 0.423), whereas control activities had a positive and significant effect (β = 0.542; p = 0.001). Human resource competence was found to moderate the effect of the control environment on financial statement quality (β = 0.323; p = 0.020), but did not moderate the effect of control activities (β = −0.147; p = 0.189). These findings reveal an asymmetric moderation pattern, in which human resource competence tends to act as a leverage for effectiveness on the control dimension whose direct effect is weak. The study concludes that the elements of internal control do not contribute uniformly to financial statement quality, so that strengthening control activities and improving apparatus competence should become policy priorities.]]>
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