THE ROLE OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) IN AUDITING PUBLIC SECTOR COMPANIES

Abstract

The implementation of International Financial Reporting Standards (IFRS) has significantly transformed the landscape of public sector auditing. This article explores the role of IFRS in improving transparency, comparability, and accountability in the audit processes of public sector companies. It discusses the alignment between IFRS and International Public Sector Accounting Standards (IPSAS), evaluates the challenges of IFRS adoption in public institutions, and examines case studies from developing countries, including Uzbekistan. Findings reveal that the application of IFRS enhances audit quality by introducing uniform standards, though full compliance is often hindered by institutional capacity and legal discrepancies. Recommendations are provided to harmonise IFRS with national audit frameworks for better governance outcomes.