Financial reporting in the public sector plays a very crucial role in how public entities account for their stewardship of public money and other .. Read more assets. Financial reporting through proper compliance with the International Public Sector Accounting Standards helps in sound decision-making and at the same time increasing accountability, openness, and transparency in the use of those resources. It also helps to improve the performance of, and trust in, the public sector. Financial reports provide basic information to people interested in the performance of an entity (the users). They allow the entity to be held accountable for how it manages and uses the money it receives, including the entities in the public sector. Additionally, the ever-disturbing subject of most public sector entities preparing financial reports which receive qualified opinions raises a lot of concern by the various users of those financial statements and other stakeholders. The impact of the COVID-19 pandemic further complicates the situation in the accounting and financial reporting requirements in the public sector.
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