Question 3 (Optional)

Judging whether financial statements of a public sector entity is of right quality or not is not an easy task, especially where the user is an accounting amateur. The Accountant recently laid 2019 financial statements before the Finance and Administrative Committee, of which you are a member. Some members have downgraded the quality of the said financial statements for the mere reason that it was not nice and professional. You felt the committee was unfair in their assessment of the quality of the financial statement since no acceptable framework for quality assessment was used.

Required: Recommend, with justification, an appropriate framework for assessing the qualitative characteristics of financial statements of public sector entities.