^aAhmadu Bello University, Nigeria

^bUniversiti Utara Malaysia, Malaysia

Abstract

Incidence of corporate financial scandals over the years have generated increased concern and comments by observers on the efficacy and quality of financial reports produced by corporate organizations. This has result to doubt as to whether the financial reports emanating from organizations, possesses the evaluative benefits and quality to reveal the actual financial status of organizations and to support the information needs of diverse users. Moreover, the introduction of International Public Sector Accounting Standards (IPSAS) is expected to serve as corrective measure, though within relevant contingencies.  The objective of this paper is to conceptually come up with a framework that explains key contingent factors that influences financial reporting quality (FRQ) under an accounting system that applies the cash-basis IPSAS. Based on archival survey and theoretical justifications, the conceptual framework of the paper posits that, internal audit quality and staff competence are potential organizational factors that could accentuate higher quality financial reporting practice in the public sector, despite the adoption of accounting standards. This paper serves as useful direction for future research towards testing and understanding the significance of organizational contingencies on FRQ during cash-basis IPSAS application.