Public Financial Governance Improves through Transparent Reporting and Independent Auditing

Abstract

Government financial statements play a central role in ensuring accountability and transparency in the management of public funds. Their primary purpose is to provide relevant information for decision-making and to demonstrate responsibility for the resources managed by the government. In the context of modern governmental accounting, the implementation of public sector accounting standards aligned with international principles strengthens the credibility and reliability of financial reporting. Information technology further enhances efficiency and transparency through the digitalization of accounting systems and data-driven auditing processes. Nevertheless, this transformation also introduces challenges related to data security and the need to improve human resource competencies. Therefore, this study examines how government financial reporting, the role of audit institutions, and the use of technology can jointly reinforce public financial governance that is transparent, accountable, and adaptive to the dynamics of the digital era. The findings emphasize the integration of accounting reforms, digital innovation, and audit mechanisms as essential foundations for building a trustworthy and sustainable system of public sector financial management.