As our political system shifted from despotism to democracy, sovereign power changed hands from thoseof monarchs’ to those of citizens’. Sovereign power is another name for the “right” of taxation. In otherwords, citizens have come to control taxation. Under indirect democracy, people exercise this sovereignpower through the election of their representatives. The contribution of public sector accounting tosociety is to provide accounting information for the citizens, who are the ultimate holders of the power oftaxation, to judge whether or not their elected representatives are the right people to be entrusted with thispower. Public sector accounting
