This paper examines the relationship between the adoption of accrual-based IPSAS and the level of perceived corruption of Latin-American countries, considering the moderating effect of the country’s institutional quality.
Main findings indicate that the harmonization of public sector accounting through the adoption of IPSAS generates a positive effect on the corruption level in Latin-American countries, causing a reduction in their indexes of perception of corruption. The countries’ institutional context, as hypothesized, increases such effect, making it even more significant in the cases of partial adoption.
To improve accountability and decision-making in public sector entities overall, contributing to reduce corruption, IPSAS adoption requires an institutional environment favorable to take the best of their benefits.