Question

Discuss four or more areas that the government makes a deliberate effort to provide effective financial information reporting.

Answer 1

following are the four areas where government makes a deliberate effort to provide effective financial reporting-

1. Setting internal controls- Government set up internal control mechanism to ensure that funds are not siphoned off fraudulently.

2. Compliance with basis of accounting- Government adheres to follow a single basis of accounting i.e. accrual or cash basis, so that data of government remain comparable.

3. Data collection- Government spends lots of effort and energy in data collection to bring accuracy, truthness, fairness in the information so that data of the government remainds reliable.

4. Comparability- Government focuses on ensuring that data remains comparable so that government can perform various analysis to understand how similar economies are performing and what course correction needs to be taken.

Also, government focuses on various other areas like audit, involvement of public, feedback mechanism to ensure that financial statement remain faithful and reliable by the public and other various bodies accross the world.