Assessment of The Reliability of The Portuguese Republic Financial Report (2010 To 2019)

Abstract

Objective: Accountability and transparency are essential values within the New Public Governance, in which reporting emerges as an instrument of accountability from public managers to stakeholders. In this context, the research aims to study the reliability of the Financial Reporting of the Portuguese State from 2010 to 2019.   Method: The investigation method was the case study. It was analysed the limitations disclosed in the Opinions of the General State Account, issued by the Court of Auditors, (TdC), from 2010 to 2019. Data have been classified to carry out the descriptive analysis, allowing the interpretation of the information.   Results: It can be concluded that the reliability of the Portuguese State's financial reporting is conditioned, namely by limitations of the scope and by the existence of material errors. Also, the lack of consolidated financial information and an accounting system that allows the integrated recording of State operations, as provided for in the legislation, affects the transparency and reliability of the General State Account. These constraints also limit the issuing of an opinion by the Court of Auditors under the International Standards on Auditing.   Originality/Relevance: There is no known research on the reliability of the financial reporting of the Portuguese State, which is essential for the desired transparency.   Theoretical/methodological contributions: The study contributes to the knowledge of the public sector transparency, meeting the stakeholders’ requirements for good governance practices and accountability.