The Development of Auditing in the Public Sector in Albania and Responsible Institutions

Abstract

Auditing in the public sector has evolved over the years to meet the needs of a business environment that is constantly changing. In an effort to help organizations achieve an accurate assessment of risk and business development, internal audit plays a particularly important role. Although internal audit has existed since the beginning of human civilization, in Albania it developed much later. The economic and financial development of Albania over the last decades, in the context of economic globalization, has had a significant impact on auditing institutions, that have to do their best to measure the efficiency of public fund usage. This paper aims to analyze the historical development of auditing in the public sector, and measure by quantification the performance of the institutions that have been responsible for organizing auditing in the public sector in Albania, as well as identifying the national and international policies that have brought about the introduction and evolution of the audit concept. Recognizing the genesis of the public sector audit activity and the progress of the responsible institutions, we can understand the current situation and the needs for change that would increase the efficiency of work in those institutions.