DIGITAL TRANSFORMATION AND ITS IMPACT ON PUBLIC SECTOR ACCOUNTING QUALITY IN DEVELOPING ECONOMIES
DOI:
https://doi.org/10.5281/zenodo.19584035Keywords:
Digital Transformation, Public Sector Accounting, Accounting Quality, Developing Economies, Financial Accountability, E-GovernmentAbstract
This study aims to analyze the impact of digital transformation on the quality of public sector accounting in developing economies using a literature review approach. The research systematically examines and synthesizes relevant academic articles, policy reports, and prior studies published in recent years to understand the relationship between digital technology adoption and improvements in accounting practices. Digital transformation, characterized by the integration of technologies such as cloud computing, big data analytics, and e-government systems, has played a significant role in enhancing the efficiency, transparency, and accountability of public financial management. The findings of this study indicate that the implementation of digital systems contributes to higher accounting quality through improved data accuracy, real-time reporting, and better internal control mechanisms. However, the study also identifies several challenges, including technological disparities, limited human resource competencies, and institutional constraints that may limit the effectiveness of digital transformation initiatives. Therefore, strengthening digital infrastructure, improving technical skills, and establishing supportive regulatory frameworks are essential to optimize the benefits of digital transformation in the public sector. This study provides valuable insights for policymakers and researchers in advancing the quality of public sector accounting in developing countries.
Downloads
References
Al Sabti, A. A. W. H. (2023). Implications for Enhancing the Financial Reporting Quality Brought on by the Digital Revolution of Internal Control. International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., 8(4), 24.
Alsharari, N. M., & Ikem, F. (2023). Digital accounting systems and information technology in the public sector: Mutual interaction. Journal of Systems and Information Technology, 25(1), 53–73. https://doi.org/10.1108/JSIT-09-2021-0190
Cheng, Y., Zhou, X., & Li, Y. (2023). The effect of digital transformation on real economy enterprises’ total factor productivity. International Review of Economics & Finance, 85, 488–501. https://doi.org/10.1016/j.iref.2023.02.007
Chepkorir, F., & Kariuki, G. (2024). Digital Transformation and Quality of Financial Reporting in Nairobi City County Government, Kenya (SSRN Scholarly Paper No. 4948536). Social Science Research Network. https://doi.org/10.2139/ssrn.4948536
Dombrovska, N. (2023). Digital transformation of accounting: The impact of technologies on the efficiency and quality of financial reporting. Ekonomichnyy analiz, 33(2), 239–246.
Gunasilan, U. (n.d.). DIGITAL TRANSFORMATION TECHNOLOGIES RESHAPING FINANCIAL REPORTING, TRANSPARENCY, AND ACCOUNTABILITY IN PUBLIC SECTOR ORGANIZATIONS. 40(07).
Hamdy, A., Diab, A., & Eissa, A. M. (2025a). Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries. International Journal of Financial Studies, 13(1), 30. https://doi.org/10.3390/ijfs13010030
Hamdy, A., Diab, A., & Eissa, A. M. (2025b). Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries. International Journal of Financial Studies, 13(1), 30. https://doi.org/10.3390/ijfs13010030
Heiling, J. (2025). Digital transformation and the accounting for intangible assets in the public sector. Journal of Public Budgeting, Accounting & Financial Management, 38(1), 134–155. https://doi.org/10.1108/JPBAFM-09-2024-0177
Ikwuanusi, U., Onunka, O., Owoade, S., & Uzoka, A. (2024). Digital transformation in public sector services: Enhancing productivity and accountability through scalable software solutions. International Journal of Applied Research in Social Sciences, 6, 2744–2774. https://doi.org/10.51594/ijarss.v6i11.1724
Kant, S., Balami, D. A., Alemu, Z. K., & Takaro, G. S. (2025). Digital Transformation in Accounting Effect on Public Sector Accountability Through Digital Innovations in the Public Sector in the Horn of Africa. In Enhancing Public Sector Accountability and Services Through Digital Innovation (pp. 237–264). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3693-9251-5.ch007
Landjohou, G., & Christopher, E. (2026). Digital Transformation in Public Service Delivery: A Narrative Review of Opportunities and Challenges in Developing Countries. Advancement in Management and Technology (AMT), 6(3), 01–12. https://doi.org/10.46977/amt.2026.v06i03.001
Lestari, P. A. (2025a). Transparency and Accountability in the Digital Era: Insights from Public Sector Accounting. Sinergi International Journal of Accounting and Taxation, 3(3), 195–208. https://doi.org/10.61194/ijat.v3i3.864
Lestari, P. A. (2025b). Transparency and Accountability in the Digital Era: Insights from Public Sector Accounting. Sinergi International Journal of Accounting and Taxation, 3(3), 195–208. https://doi.org/10.61194/ijat.v3i3.864
Miaoquan, X., Yu, K., Yu, Xuewen, L., Yi, W., Jun, Y., & Kok Loang, O. (2023). THE IMPACT OF DIGITAL TRANSFORMATION ON FINANCIAL REPORTING AND ANALYSIS IN THE ACCOUNTING INDUSTRY. International Journal of Accounting, 8, 324–336. https://doi.org/10.55573/IJAFB.085023
Osei-Dwomoh, E., & Forkuo, G. O. (2025). Digital Transformation of Public Financial Management in Ghana and Developing Economies: A Systematic Review of Accountability, Transparency, and Efficiency (SSRN Scholarly Paper No. 5797042). Social Science Research Network. https://doi.org/10.2139/ssrn.5797042
Paixão, F. S. da, Silva, D. J. C. da, Melo, J. B. de, Dias, H. B. G., & Neto, A. M. da C. (2024). IPSAS ADOPTION AND DIGITAL TRANSFORMATION IN THE PUBLIC SECTOR: EVIDENCE FROM WORLD ECONOMIES. Boletim de Conjuntura (BOCA), 17(50), 351–367. https://doi.org/10.5281/zenodo.10699383
Parindingan, F. Y., Haliah, H., & Nirwana, N. (2024). Evaluation of Transparency and Accountability of Regional Government Financial Reports in the Digitalization Era. Journal of Accounting and Finance Management, 5(5), 1051–1058. https://doi.org/10.38035/jafm.v5i5.1066
Sari, R., & Muslim, M. (2023). Accountability and Transparency in Public Sector Accounting: A Systematic Review. Amkop Management Accounting Review (AMAR), 3(2), 90–106. https://doi.org/10.37531/amar.v3i2.1440
Takhirovna, M. N. (2025). FROM LEDGERS TO ALGORITHMS: DIGITAL TRANSFORMATION IN PUBLIC SECTOR ACCOUNTING. AMERICAN JOURNAL OF EDUCATION AND LEARNING, 3(8), 467–483.
Villao, D., Vera, G., Duque, V., & Mazón, L. (2023). Opportunities and Challenges of Digital Transformation in the Public Sector: The Case of Ecuador. In O. Gervasi, B. Murgante, A. M. A. C. Rocha, C. Garau, F. Scorza, Y. Karaca, & C. M. Torre (Eds.), Computational Science and Its Applications – ICCSA 2023 Workshops (pp. 3–15). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-37117-2_1
