ORGANIZATION OF THE AUDIT PROCESS IN MUNICIPAL INSTITUTIONS: CASE STUDY ALBANIA

Abstract

Accountability and transparency are the basic principles of the efficient functioning of public finances at local level, and especially of a modern welfare state. The development of external and internal audit commitments is necessary to ensure an economical and cost-effective use of local government financial resources. This study has focused on how to organize internal and external audit activities at secondary level of government in Albania, in other words the local government. But which are the units responsible for the functioning of audit process in local self-government entities? This study's findings show that, although the legal framework for internal and external audit has been developed, the quality of internal audit units is not at the expected levels. Particularly in the organization of the audit activity, in the context of Albania's specific conditions, the government must take into account the creation of a favorable and motivating environment for the employment of auditors. The City Council and the Mayor should increase and strengthen the importance of the audit profession and audit capacities at local level.

Keywords

• local government
• internal audit
• external audit