BETTER AUDITING PERFORMANCE, HIGHER EFFECTIVENESS OF GOVERNMENT - ALBANIAN CASE

The economic, social, and financial developments in face of a very fast globalizing environment and the efficiency required in the appropriate use of public funds has lead to very significant changes and advances in our world, which have to reevaluate the role that the auditor profession entitles. The world today requires more effective public institutions and auditing agencies in order to promote honesty and competent governance, for the benefit of the present and the future of every nation. Keeping this objective at mind, this study concentrates on the efficiency and effectiveness of audits in the public sector in terms of improving governance while focusing specifically on issues related to efficiency indicators and their effectiveness. This study gives an overview of public sector audits and the institutions that carry out these duties, as well as the theoretic basis of conducting an audit in the public sector. Measuring effectiveness and efficiency of an audit is evaluated through several factors and indicators, which we believe are very influential in the process. The study realistically examines the current situation of the auditing process in Albania and gives relevant recommendations which conclude that the effectiveness of audits depends on factors related to the process itself as well as how it is perceived, such as the characteristics of the institution being audited, the characteristics of the environment, independence, integrity, as well as professionalism. The result from an audit process aims to be an added value to governing activities and is often of little economic significance. Nevertheless the effect it has on improving governance is very positive thus helping change the notion that the auditing process should be regarded as merely a necessity or need.