V1I5P12

Digital Transformation and Financial Reporting Quality: A Cross-Jurisdictional Analysis of Public Sector Entities in the United States and Emerging Economies

Sodiq Ogunmola^1*

Abstract

Digital transformation encompasses the new ways public institutions are creating, managing, and reporting financial information. Indeed, as governments adopt such tools as enterprise resource planning (ERP) systems, cloud-based financial platforms, e-invoices, and machine-readable reporting taxonomies, the question arises as to whether public financial reports improve in quality with these innovations. This paper evaluates how digital transformation impacts financial reporting quality across public sector entities in the United States and emerging economies through a comparative analysis. It aims to identify how these digital technologies improve or limit core dimensions of reporting quality in areas such as accuracy, timeliness, transparency, reliability, and accessibility. Empirical studies, international standards, and policy reports support points of the analysis. Therefore, it concludes that digital transformation would create a solid basis to improve the quality of public financial reporting in the world, but its long-term success depends on institutional readiness, integration capacity, regulatory support, and continued investment in digital public infrastructure.

Keywords:

Digital transformation; financial reporting quality; public sector; United States; emerging economies; ERP systems; cloud computing; transparency; accountability; digital taxonomies; public financial management.