PurposeThe purpose of this paper is to examine the role of public sector accounting in implementing neoliberal reforms.Design/methodology/approachThe proposition that the adoption and development of accrual accounting in the public sector is a technical development intended to improve transparency and accountability is investigated. The paper compares the development and use of accrual accounting in public sector financial management reforms in the UK and New Zealand.FindingsThe findings in this paper suggest that in both countries, accrual accounting, as developed, also provides a means to reduce the government's role to that of procurer of services and enforcer of rules set by others, thus advancing a controversial privatisation and trade liberalisation agenda which is consistent with neo‐liberal principles.Research limitations/implicationsThe paper shows that in contrast to more usual claims about the need for accrual accounting to provide a “read across between the sectors” or that public interest motives assure the neutrality of accounting, seemingly technical accrual accounting developments seem to function as a political tool to aid a controversial political agenda. There is a need to look at the overall effect of public sector financial management reforms and the role of, and implications for, accounting standard‐setters.Originality/valueThe information in the paper applies to accounting the new political economics literature on agenda control and information based structures where control is achieved through information asymmetries.

The NHS audit market is regulated by the Audit Commission (AC) and has unique features. We develop a model for audit fees that includes rigorous analysis of the type of auditor. Poor financial standing does not give rise to higher audit fees. Despite regulation the study supports the existence of a Big Five price premium on the audit fee, but only one firm has a premium. We found no premium due to industry specialisation. The removal of performance audit from AC regulation will require improved audit fee reporting and control.

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This study examines the influence of women on the boards of directors of National Health Service Foundation Trusts (FTs) in England. FTs provide a public service where social performance is the primary objective, although financial constraints must be met.Female presence (the proportion of women) is higher for executive directors than nonexecutives, reflecting the high number of women employed in the sector. We find that a high female presence among executive and non-executive directorships does not result in significant differences either in financial return or service quality. When gender diversity on boards is consistently high (high level of female presence across boards), the benefits on performance of having more women on the board may not be discernible. However, female