Institutional conditions shaping digital accounting systems and public sector financial transparency

Public sector financial transparency is central to accountable and sustainable governance, yet evidence on the contribution of digital accounting systems remains dispersed across accounting, information systems, auditing, public administration, and open-government research. This systematic review examines how digital accounting systems relate to transparency outcomes, the institutional conditions that shape those outcomes, and the barriers to implementation. Following PRISMA 2020, a Scopus search of English-language, open-access publications from 2020 to 2025 identified 12,307 records; 288 records remained after database filtering, 68 reports underwent full-text assessment, and 30 studies were included. A narrative thematic synthesis identified three interrelated themes: recurrent transparency mechanisms associated with digital systems; institutional governance and implementation conditions; and implications for public sector modernization. Across the included literature, ERP, IFMIS, e-government platforms, cloud accounting, XBRL, blockchain, open-data portals, and IT-audit frameworks were associated with improved accessibility, timeliness, traceability, standardization, and reliability of public financial information. These associations were conditional on governance quality, cybersecurity, infrastructure, technical capability, organizational readiness, leadership, and data-quality controls. The synthesis therefore develops a transparency-paradox framework: increased digital disclosure may produce formal visibility without substantive accountability when information is inaccurate, unusable, or disconnected from oversight and corrective action. Because the evidence base is heterogeneous and largely observational, the review does not establish causality. The findings support socio-technical reforms that align digital infrastructure with institutional capacity, assurance, and participatory accountability.