This research aims to find out the influence of accounting understanding on the quality of financial reporting and to emphasize the importance of Accounting Understanding in preparing accurate and reliable financial reporting. This research utilizes a quantitative approach with primary data get from questionnaires and interviews. The research population consists of employees in the accounting, finance, and related departments in the trade, services, manufacturing, banking, and education sectors in the city of Bandung. A total of 140 respondents were selected as the sample. The analysis technique used is simple linear regression with the assistance of IBM SPSS version 25 statistical testing tools. The results of the study show that accounting understanding influences the quality of financial reporting. It was found that 73.8% of the variation in the quality of financial reporting is explained by accounting understanding, while the other is influenced by other variables. Increasing accounting understanding has an impact on the quality of financial reporting more accurate and reliable and encourages the creation of a transparent, accountable and integrity-based business environment both locally and nationally. The novelty of this study lies in the simultaneous approach between questionnaires and interviews to measure accounting understanding in more depth as well as a wider coverage of sectors in the Bandung City area that have not been widely explored in previous studies.
Keywords: Accounting Understanding; Bandung City; Employees; The Quality of Financial Reporting
