The Role of Independent Public Auditing and Financial Transparency in Strengthening Fiscal Accountability and Good Governance

Abstract

Public demand for transparency and accountability in government financial management has continued to increase as a logical consequence of implementing the principles of good governance. This study aims to examine the role of audit opinions, financial report quality, and public sector auditing in strengthening accountability and integrity in state financial management. Using a literature review approach of studies published in last five years, the findings reveal that audit opinions serve as a public assurance instrument, while transparent financial reporting reinforces social control over the use of public funds. The results also indicate that synergy between effective audit systems, high-quality financial reporting, and proper governance practices enhances public trust and promotes government fiscal efficiency. Furthermore, this study provides empirical evidence that transparency and accountability are foundational elements of modern governmental legitimacy and determinants of public policy effectiveness. These findings contribute to a broader understanding of how audit mechanisms and financial disclosure play an integral role in achieving credible, efficient, and transparent financial governance.