The purpose of this study is to examine the quality of the internal accounting reports presented to the councillors of fifteen Victorian municipalities. The fifteen municipalities included in the study do not represent a random sample of the 210 Victorian municipalities. There are several different types of municipalities in Victoria. Some municipalities are small in area and are characterized by very high population densities, some municipalities are large in area and are sparsely populated while others are characterized by rapidly growing populations.
A classificatory distinction between the different types of municipalities was made because different types of municipalities encounter different problems. It was thought that the form and content of the internal accounting reports could vary in response to the different types of problems encountered by each type of municipality. The following classification was used:
1. Inner-suburban (developed) municipalities.
2. Outer-suburban (developing) municipalities.
3. Country-urban municipalities.
4. Country-rural municipalities.(From Introduction)