Experiences Concerning Transition to Accrual Accounting in the Public Sector from the Perspective of Supreme Audit Institutions

Abstract

Nowadays the quality of budget management and the availability of reliable budget information are becoming increasingly important. A key area of these changes is the continuous development of public accounting, including the application of accrual accounting. The characteristics of development in public accounting vary by country since EU member states have different public finance systems. The process is constantly monitored by the supreme audit institutions, including the State Audit Office of Hungary. The article presents the most important areas of change in public accounting, especially the role of standards. In addition, the purpose of the article is to give a detailed description of how the public accounting system in two countries developed, highlighting the aspects of supreme audit institutions. The experiences and the perspective of supreme audit institutions regarding the issue are presented through the examples of the countries. Finally, the aim of the article is to give an overview of the main changes in the Hungarian public accounting system, also from the point of view of the supreme audit institution.