"IMPLEMENTATION OF INDIAN PUBLIC SECTOR ACCOUNTING AND ITS IMPACT ON AUDITING PRACTICES: AN EMPIRICAL STUDY OF STAKEHOLDERS’ PERCEPTIONS IN SELECTED PUBLIC SECTOR ORGANIZATIONS"

Abstract

Aim: This study investigates the impact of the implementation of Indian Public Sector Accounting (IPSA), aligned with International Public Sector Accounting Standards (IPSAS), on the effectiveness of auditing practices in the Indian public sector. It specifically explores stakeholder perceptions—including auditors, accountants, financial analysts, and policymakers—regarding transparency, accountability, and compliance in financial governance within selected public sector organizations.

Method: A mixed-methods research design was employed, integrating comparative analysis, qualitative content analysis, and descriptive statistics. Data were collected from both IPSAS-compliant and non-compliant public sector organizations, supplemented by official government reports, policy documents, and published literature. The sample included a wide range of public sector organizations to ensure representation and balance. Primary data were obtained through structured surveys administered to stakeholders, while secondary data were drawn from journals, research articles, and government publications. Statistical techniques such as correlation, multiple regression, chi-square tests, t-tests, and factor analysis were applied using SPSS to analyze relationships and validate findings.

Findings: The results indicate that IPSAS adoption has improved transparency, comparability, and reliability of financial statements in compliant organizations, leading to more robust auditing outcomes. Stakeholders perceive that IPSA enhances audit quality, reduces scope for misreporting, and strengthens accountability. However, challenges were identified in terms of capacity building, inconsistent compliance, and lack of uniform training across organizations. Comparative analysis showed that IPSAS-compliant organizations demonstrated stronger audit mechanisms than non-compliant entities.

Result: The study concludes that the implementation of IPSAS through IPSA significantly contributes to strengthening auditing practices in Indian public sector organizations. Nevertheless, the effectiveness of auditing depends on adequate training, organizational readiness, and supportive policy frameworks. The research recommends targeted capacity-building programs, harmonized compliance strategies, and the institutionalization of stakeholder feedback mechanisms to ensure sustained improvements in financial governance and auditing standards in the Indian public sector.