Final answer:
Governmental financial reports offer more detail than corporate annual reports to fulfill the public's 'right to know', emphasizing transparency, especially regarding details like funds spent on lobbying as per the Lobbying Disclosure Act.
Step-by-step explanation:
Based on the need to satisfy citizens' "right to know", governmental financial reports generally provide more detail when compared to corporate annual reports. These reports often include extensive disclosures about expenditures, such as the amount of money spent on lobbying efforts. The rationale behind this practice is two-fold. First, it serves as a check on the influence of special interests, ensuring that lawmakers are accountable for their financial support. Second, it promotes transparency, a core principle in public administration. For example, the Lobbying Disclosure Act at the federal level, as well as similar state-level legislation, mandates that certain information about lobbying activities be made public. This enables citizens to be more informed about the political influence exerted by various donors, particularly those that may hold controversial or unpopular positions.