Enhancing Public Accountability through IPSAS-Based Financial Reporting: Evidence from the Turkish Court of Accounts

Abstract

The purpose of this study is to evaluate whether financial reporting compliant with Public Accounting Standards prepared based on IPSAS enhances accountability in the public sector, through the perceptions of auditors at the Turkish Court of Accounts (TCA). Reform approaches such as new public management and new public financial management have accelerated the transition to the accrual basis in public accounting and the development of International Public Sector Accounting Standards (IPSAS). In line with this global trend, Türkiye transitioned to an accrual-based accounting system under the Public Financial Management and Control Law No. 5018, and subsequently published the Public Accounting Standards prepared based on IPSAS. Data were collected via a survey administered between March and July 2021 to 111 professional auditors at the TCA and analyzed using exploratory factor analysis and multiple linear regression. The empirical findings indicate that, according to TCA auditor perceptions, standards-compliant financial reporting is positively associated with accountability. However, the perception that full compliance with PAS had not yet been achieved in public institutions during the 2021 data collection period indicates an implementation gap between the potential benefits of the standards and the level of implementation during the reform process.