The Role of Auditing Institutions in Advancing Fiscal Transparency: An Empirical Assessment of Global Practice

Fiscal transparency, a key element of good governance, is shaped by auditing, which compels bureaucracies to disclose information for accountability. However, the mechanisms through which auditing impacts transparency remain unclear. This study examines how auditing enhances fiscal transparency through various accountability pressures. Using a global panel dataset, it finds that auditing significantly improves fiscal transparency, though its impact varies in countries at different economic development levels, highlighting the importance of having mature auditing institutions. The findings offer a comparative perspective on auditing′s role in fiscal transparency and provide practical insights for policymakers to strengthen transparency and accountability.