Functioning of Public Internal Audit in Albania

Abstract

Internal audit is an important tool in helping senior management of organizations to find the right solutions in meeting the objectives. Through findings and recommendations, auditors provide assurance and advice on the management of internal control systems, risk and governance. The management of public organizations in Albania still has an incomplete conception and a low level of awareness on the role of contemporary internal audit services. This is firstly related to the quality of audit activities, where in significant cases the quality of this service is assessed to be not at the levels required by contemporary standards and practices, and secondly to the lack of recognition and misuse of these services by many administrators of public organizations. The aim of this research is to determine the state of capacity of public administration employees in the field of internal audit, in public organizations in Albania and give the right recommendations for the development of these capacities in order for the internal audit service to become a powerful tool in the hands of managers to achieve their objectives by adding value to the organization. The methodology used for the research has its own dimensions such as: specification of research subjects and sampling, tools used for research, implementation plan, ethical issues, presentation of research findings, etc. The research is based on primary and secondary data collection. The research is based on the testing of the Hypothesis, H0. The practical implications of this paper consist in the fact that: this is an in-depth study of the problems faced by the internal audit activity in public sector organizations in Albania. The conclusions and recommendations given to address these issues will add value to the management of these organizations, by helping managers reconsider their roles and responsibilities in order to strengthen the Internal Control System, and to make it a powerful tool in meeting their objectives. They also serve internal auditors to improve their practical activities. The paper is original, as so far in Albania no other studies with these dimensions have been conducted in this field, and it also has both theoretical and practical value for researchers, internal auditors and managers of the field.