State audit for strengthening the accountability in public funds management: Case of Republic of Macedonia

Jadranka Mrsik, Tome Nenovski, Sanja Radenkovic

Abstract

The aim of this paper is to analyze the role of the state audit in strengthening the accountability in managing the public funds. Appropriate and effective use of public funds  ensurs a healthy economic and financial management, as well as transparency, which leads towards a positive development of the society as a whole.

We evaluated the operation of the state audit in Macedonia by analyzing the regularity audit performed on five state institutions from 2010 to 2014 and we compared the results with the state audits in two neighboring countries. Our findings suggest weaknesses in the use of public money by the institutions covered by this analysis and in the operation of the State Audit Office. The research will help in increasing the public awareness about the necessity of responsible management in the public sector.

Keywords

state audit; public funds management; supreme audit institution; accountability; Republic of Macedonia

References

Akyel, R., (2011). Strengthening Communication Capacity of SAIs for Ensuring Good Governance in Public Financial Management, ASOSAI-EUROSAI Joint Conference, Istambul, 2011.

Baimyrzaeva M. and Kose H. O. (2014). The role of supreme audit institutions in improving citizen participation in governance. International Public Management Review Vol. 15, Iss. 2

Bobeş F. M. (2012). Ensuring the legality and performance in using public funds. Romanian Economic and Business Review – Vol. 7, No. 1

Center for Economic Analysis (CEA). (2012). The audit as a profession in the Republic of Macedonia. [online]. Skopje.[05.05.2016] Retrieved from: http://www.cea.org.mk/documents/kolumni/Revizija_u_RM_new.pdf

INTOSAI (International Organization of Supreme Audit Institutions). 1977. “Lima Declaration of Guidelines on Auditing Precepts.” Ninth Congress of INTOSAI, Lima, Peru.

INTOSAI Development Initiative (IDI). (2014). Performance, Capacities and Needs of SAIs. Global SAI Stocktaking Report. INTOSAI

Khan, Muhammad Akram. (2013). Management Accountability for Public Financial Management.http://siteresources.worldbank.org/PSGLP/Resources/32AccountabilityforPFMKhan.pdf. November.

Lazarevic et al (2015). Performance audit and policy evaluation in the Western Balkans: On the same or parallel tracks? European Policy Centre

Mahacek D. and Radman Funaric M. (2013). APPLICATION OF STATISTICAL ANALYSIS IN AUDITED COMPANIES OWNED BY LOCAL GOVERNMENTS International Scientific Conference Whither Our Economies” October 24-25, 2013Proceedings, ISSN (online) 2029 - 8501

Mahacek D. and Vcev A. (2015). Statistical Analysis of Companies from Performed Efficiency Audit. Proceedings of MAC-EMM 2015 Multidisciplinary Academic Conference on Economics, Management and Marketing in Prague 2015 / ing. Jiří Vopava ing. Radek Kratochvíl ing. Vladimír Douda (ur.). - Prague : MAC Prague consulting Ltd. , 2015. 66-73 (ISBN: 978-80-88085-00-3).

Midaoui A.E. (2011). Building the professional, organizational and institutional capacity of SAIs. International Journal of Government Auditing – April

Nguyen, C.K (2012) Enhancing the effectiveness of budget expenditures by the means of auditing: A case study of State Audit office in Vietnam [online]. Master thesis, Hanoi, University of Tampere.

Organisation for Economic Co-operation and Development (OECD). (2011). Good practices in supporting Supreme audit institutions [online]. Paris.

Pintea M. O. and Sorin A. (2009). Supreme audit institutions, comparative study for the Central and Eastern European countries members of the European Union. The Annals of The "Ştefan cel Mare" University Suceava. Fascicle of The Faculty of Economics and Public Administration. Volume 9, No.1(9)

Ramkumar W. and Krafchik W. (2005). The Role of Civil Society Organizations in Auditing and Public Finance Management.

World Bank (2001). Features and functions of supreme audit institutions. [08.05.2016] Retrieved from: http://www1.worldbank.org/prem/PREMNotes/premnote59.pdf

World Bank. (2015). Report for FYR Macedonia public review: Fiscal policy for growth. Retrieved from: http://respublica.edu.mk/attach/izvestaj.pdf

Law on budget (Official Gazette of Republic of Macedonia No.64/0504/08, 103/08, 4/08, 103/08, 156/09, 95/10 156/09, 95/10, 180/11и 171/12).

The Law on State Audit Institution (Official Gazette of RS” No. 101/2005, 54/2007 and 36/2010)

The Law on State Audit Office (Narodne novine 80/11).

Law for State Audit (Official Gazette of Republic of Macedonia” No. 66/10, 145/10, 12/14 and 43/14).

Law on audit (Official Gazette of Republic of Macedonia No.158/10 и 135/11).

National Audit Office of the Republic of Macedonia: http://www.dzr.mk/en.

State Audit Institution of Serbia: http://dri.rs/home.4.html

State Audit Institution of Serbia: http://www.revizija.hr

Institute of Certified Auditors of the Republic of Macedonia (http://www.iorrm.org.mk/zanas.h






Copyright (c) 2017 Jadranka Mrsik


Timisoara Journal of Economics and Business | ISSN-L 2286-0991 | www.tjeb.rowww.degruyter.com


Cross-check-Logo

The editorial board is participating in a growing community of CrossCheck System’s users in order to ensure that the content published is original and trustworthy, aiming to eliminate plagiarism and provide a high standard and quality peer-review.

Since 2014 (7th Volume), Timisoara Journal of Economics and Business uses DOI (Digital Object Identifier) as a permanent citation link to content article.

CreativeCommonsLicense

Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. (CC BY-NC-ND 3.0)

Article Tools
Email this article (Login required)
Email the author (Login required)
About The Authors

Jadranka Mrsik
University American College Skopje
Macedonia, the former Yugoslav Republic of

Tome Nenovski
University American College Skopje
Macedonia, the former Yugoslav Republic of

PhD

Sanja Radenkovic
Stopanska banka Ad Skopje
Macedonia, the former Yugoslav Republic of

MSc

User
Journal Content

Browse
Notifications
Font Size