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New public management (NPM) has transformed the public sector auditing context, although in quite different ways. Further, investigations into NPM’s impact on public sector auditors and audit institutions have been largely unconnected, with the exception of the critical examination of performance audits. We investigate the question of how public sector auditors’ roles and activities have changed as a result of NPM and later reforms.

We examine and synthesise public sector audit research examining reforms since the year 2000. The research presented considers changes to external and internal public sector audits as well as the development of public sector audit institutions – known as supreme audit institutions (SAIs).

Considerable changes have occurred. Many were influenced by NPM, but others have evolved from the eco-system of accounting, auditing and public sector management. External auditors have responded to an increase in demand for accountability. Additional management and governance techniques have been introduced from the private sector, such as internal auditing and audit committees. NPM has also led to conflicting trends, particularly when governments introduced competition to public sector auditing by contracting out but then chose to centralise to improve accountability. There is also greater international influence now through bodies like the International Organisation of Supreme Audit Institutions (INTOSAI) and similar regional bodies.

NPM reforms and the eco-system have impacted public sector auditing. Sustainability reporting is emerging as an area requiring more auditing attention; auditors also need to continue to develop better ways to communicate with citizens. Further, research into auditing in non-Western nations and emerging technologies is also required, especially where it provides learnings around more valuable audit practices. Empirical evidence is required of the strengths and weaknesses of SAIs’ structural variety.

Purpose – The purpose of this article is to examine the contextual variables that influence the pace of public sector reforms through the adoption of accrual accounting for the Indonesian public sector.

Design/methodology/approach – The study employs a historically informed study based on a modified version of the Luder's (1992) Contingency Model (LCM). The data are drawn from official documents issued by the Indonesian government about reporting system for the public sector in the country and interviews with the key figures involved in the public sector accounting reforms in Indonesia. The study also uses publicly available information addressing the recent progress in the implementation of the accrual accounting system in the Indonesian public sector.

Key findings – The adoption of accrual accounting in the Indonesian public sector was stimulated by the economic crisis, prodemocratic movements, and international pressures for the reform of the public sector. However, the public sector accounting reforms in the country are confronted with significant implementation barriers which include legal issues, the lack of political supports, and skilled human resources. These barriers in turn threaten the intended purposes to be achieved through the greater economic and public sector reforms in the newly democratic Indonesia.

Research limitations/implications – The arguments of the study should be understood in the context of the institutional setting of Indonesia as a developing country. Nonetheless, the findings of this study show an example of the complexity faced through the use of the private sector accounting practice in the public sector context.

Originality/value – The findings of the study support the notion that the nature of legal system, political support, and human resource capacity influence the extent to which an accounting system is adopted in the public sector.

The purpose of this paper is to explore the challenges and influential factors experienced in the development of public sector accounting reforms in the emerging economy of Sri Lanka. The reforms aim to improve public governance and transparency while reducing corruption and dishonesty.

Qualitative (thematic) analysis has been employed by using both primary and secondary data. Primary data was obtained by interviewing selected respondents from public sector organisations in Sri Lanka. The respondents were selected by using an expert purposive sampling technique. Apart from the primary data, secondary data such as government reports, relevant literature and paper articles was also analysed in order to produce more robust findings.

The findings indicate that technological and cultural factors have influenced accounting reforms in the public sector in Sri Lanka. In addition, the politicisation and bureaucracy of the public sector as well as sluggish attitudes towards costs have served as prominent barriers to efficient implementation of the reforms.

This study was limited in terms of generalisation because of relatively small sample sizes. A larger sample with more diversity could have enhanced the generalisation of the results which could serve as direction for further research.

This paper is intended to fill a gap in the existing literature on public sector accounting reforms in the context of less developed or emerging countries. It is hopefully valuable for both policy makers and practitioners by allowing them to view the development, challenges and influential aspects of the implementation of New Public Management (NPM) in Sri Lanka in order that they will be able to make informed decisions about adopting more efficient NPM practices to enhance the country’s competitive advantages.

This introductory chapter explains why public sector reforms matter and why a focus on Asia and leadership is needed. It also provides an overview of highlights, lessons and conclusions in this book. Cases of successful public sector reforms usually show leadership by central agencies, with support of the office of President or Prime Minister. While laws and rules are commonly used to further reform, cases show that more is needed to ensure success and sustainability. A range of strategies include heightened accountability, personnel changes, supporting change leaders in departments, reform through capacity development, and learning from innovations other jurisdictions. Conclusions include suggestions for further research.

Thailand continuously has had administrative reforms in spite of periods of military regime and democratic government. This chapter describes the leadership of administration reforms coming from issue experts and senior civil service officers described as a ‘jazz-banded’ leadership model of different actors. Political parties pick up reform packages consistent with their policy platforms, while the military looks for ready-to-deliver policy packages. The author discusses the example of education and health care reforms and the role of the Office of Public Sector Development Commission (OPDC). In Thailand, resistance usually occurred during the implantation stage rather than at the formulation stage. The chapter discusses that OPDC initiatives were implemented with bonuses of up to 12-month salary for some senior officers and department heads. In health care, success came from concerted efforts of health care experts who transcend their ideas from one generation to another and who kept convincing politicians running the Ministry of Public Health. However, in other instances, budget allocations may bump up against financial procedures that are detailed and tight due to anti-corruption practices. In education reforms, teachers were placed at different school districts that lacked commitment. In the decentralization of reforms, resistance comes from line ministries wanting to secure their authority, although local authorities are very active. Resistance often requires negotiation of many parties; rarely do politicians step in to overcome and assist.

This paper examines whether public sector reforms in a developing country is consistent with the principles of new public management (NPM). It examines whether Indonesian public sector reforms from the late 1990s to 2015, specifically the adoption of accrual accounting, are motivated by NPM philosophy. Reviewing and analysing Government regulations and reports, the study finds that the reforms are an attempt to implement NPM, specifically in relation to five financial management aspects (i.e. market-oriented, budgeting, performance management, financial reporting and auditing systems). However, the reforms are inconsistent with the NPM philosophy of efficiency and effectiveness in public service provisions. By requiring the use of the existing system, the reforms actually created inefficiency. This research is novel in investigating the gap between 'ideal concepts' and examining practices in an emerging country context.

The purpose of this paper is to examine public sector accounting reforms, mainly the adoption and implementation of the Cash Basis International Public Sector Accounting Standard (IPSAS) in the Central Government of Bangladesh.

Drawing on the ideas of new institutionalism, the paper investigates the factors which have forced the country to accept the Cash Basis IPSAS but have delayed its implementation in practice.

Different approaches towards the Cash Basis IPSAS are now distinct in the Central Government of Bangladesh. Differences between Bangladesh and other emerging economies have been narrowed as the potency of institutional pressures has increased, and there is a risk, as experienced in other emerging economies, that the very adoption of the Cash Basis IPSAS may remain more a rhetoric than a reality in Bangladesh. The paper demonstrates that the extent to which professional accountants and their associations participate in reforms determines the public sector accounting reform trajectories in emerging economies.

The paper demonstrates that reforms driven by indigenous administrators can have the potential of becoming more instrumental in emerging economies than the externally propagated reforms, such as IPSASs and accrual accounting. What is important is to advance incrementally those public sector accounting reforms that local administrators have identified as important, that they could cope with their existing knowledge and capacity, and that they are interested in engaging with the reform process.

First, the study has contributed to extending neo-institutional theory by bringing out the responses of different stakeholders responsible for implementing public sector accounting reforms, mainly the Cash Basis IPSAS, in practice. Next, the paper has raised a question as to whether the Cash Basis IPSAS could be an appropriate reform measure for the central government of Bangladesh.

New Zealand is a small country with a rich history of pioneering administrative reforms. This chapter describes administrative reform processes emanating from the ‘core agencies’ of the State Services Commission (SSC), Treasury and the Department of the Prime Minister and Cabinet. It describes the famous New Public Management reforms of the late 1980s–2000s, led by the Treasury that restructured ministries (creating more agencies that are single-purpose agencies), rewrote policy rules (e.g., the same laws for public and private sector employees) and created accountability from agency heads to ministers as well as SSCs who evaluate and re-appoint agency heads. It should be noted that in this Westminster system, ministers provide policy leadership but not executive leadership of ministries. The chapter describes in detail two reform processes led/administered by the SSC since the mid-2000s to increase accountability for ministry mid-term policy and organizational capability targets (performance improvement framework) as well as cross-ministry goals (better public services). These efforts have been evaluated over time as being quite effective and are noted for their sustainability and improvement.

The objective of the book is to examine specific public sector reforms in three core Public Administration areas, namely political–administrative relationships, the delegation of authority to senior managers and performance management.

It also locates the relevant public sector reforms within the context of the broader international debate on public sector reform. Each of three chapters on public service reform begins with a comparative perspective on the respective theme.

The period of the study is from the onset of democratic rule in 1994 until 2021. This period covers the Presidencies of Nelson Mandela, Thabo Mbeki, Jacob Zuma and Cyril Ramaphosa.

This book uses a mixed methods approach that combines quantitative and qualitative analyses. Quantitative data in the form of descriptive statistics were obtained from The Personnel and Information System (PERSAL), the central human resources database for the South African public service. This database is not ‘off the shelf’ information – rather, the data are tailor-made to the specific needs of those who request information. Qualitative sources used include data obtained from virtual recordings of webinars on public sector reform and an examination of written documents. This includes an analysis of government legislation, White Papers and Commission reports.

This paper aims to consider the suitability of Anglo‐American new public management (NPM) practices in the context of public sector reform in Japan.

The paper examines the two principal alternative approaches that have been taken to public sector reform in the UK and the USA. These comprise in the case of the UK the setting of targets by politicians and the monitoring by quasi‐autonomous non‐governmental organisations of the extent to which these are delivered upon. This is in contrast to the USA, where reform has been founded upon “market‐oriented populism”. Reforms implemented by successive Japanese administrations since the end of the Second World War are considered and the extent to which these manifested a philosophical preference for either approach.

The research finds that the Anglo‐American (occidental) versions of NPM may not be appropriate in the context of public sector reform in Japan. Attempts to achieve a decentralised and deregulated form of NPM, philosophically rooted in the 1945 Constitution as written by the post‐Second World War Occupying Power, the United States, and mimicked from its Anglo‐American contexts by Japan's political elite may, paradoxically, delay achievement of more culturally accommodating reform of the bureaucracy acceptable to all the country's principal democratic stakeholders.

The need for Japan's public sector reformers to evolve a unique form of NPM which accommodates the cultural and historical traditions of the country instead of mimicking occidental approaches is identified. Specifically, the paper provides policy proposals as to how this alternative to the UK and US models may be developed.

The paper suggests an alternative approach to public sector reform in Japan, which may be suitable for other countries looking to implement NPM but finding the USA and UK policies unsuitable in the context of their own traditions. Accordingly, the paper should be of value to public sector managers and policy makers generally who are looking to innovate upon traditional models of NPM.