Do accrual accounting practice and the supreme audit institution role improve government financial disclosure? Cross-country empirical studies

The study aims to examine accrual choice practices and the role of the supreme audit institution at the level of government financial statements disclosure in different countries. By using the data from a range of 65 observations in 2012, this study finds that the accrual level and independence of the supreme audit institution affects the level of government disclosure. The disclosure level increased sequentially based on the choice of accounting practices, as follows: cash basis, modified cash, modified accrual and full accrual. Nevertheless, the role of the supreme audit institution is only visible in strengthening disclosure levels in countries that implement full accrual, as found in previous studies.