Public Sector Accounting as an Enabler of Good Governance: A Synthesis of Recent Literature

Abstract

This study aims to synthesize literature published over the past five years that examines the role of public sector accounting in strengthening the implementation of good governance. The review focuses on accrual-based reporting reforms, the adoption of IPSAS, and the integration of financial information into budgeting and performance evaluation processes as mechanisms to enhance accountability and fiscal transparency. A structured literature review method was employed by analyzing scholarly articles, institutional reports, and relevant documents that discuss the relationship between accounting practices, public financial management, and governance quality. The synthesis reveals that accounting reforms improve disclosure quality and broaden fiscal visibility, yet the utilization of information remains limited by insufficient analytical capacity, constrained accessibility, and the technical complexity of financial reports. The effectiveness of public sector accounting is strongly shaped by institutional preparedness, internal control systems, information technology capacity, and the extent to which financial reporting is linked with performance reporting. This study concludes that accounting functions as a critical enabler of transparency, efficiency, and accountability, but its success requires supportive policies, capacity investments, and sustainable information-use mechanisms.