IMPACT OF THE NATIONAL AUDIT OFFICE ON INCREASING THE QUALITY OF PUBLIC FINANCIAL MANAGEMENT

Abstract

Utilizing human or financial resources in accordance with the policies of the organization is an ongoing challenge faced by managers / leaders. At the same time, a complex challenge is the accurate presentation of the Financial Statements of the state of an organization. Audit is a control process which aims to identify weaknesses or inefficient management of resources as well as inaccurate presentation of the financial situation within an institution. There are different types of audits; however, the most applied audits are those of regularity and financial statements. Regularity auditing is very important for an organization. The findings or the regularity audit report present to the management the regularity of the actions as well as the transactions that take place in the organization. This report informs in detail the management about the eventual non-compliance with the policies and regulations / legislation in force. Such staff action can have major consequences for the organization. Non-compliance with the policies and strategies of the organization inevitably results in a chaotic, unstable, and very dangerous situation.

Another very important type of audit is the audit of financial statements. The purpose of auditing financial statements is to investigate and find any possible discrepancies between the actual situation and the reporting in the Financial Statements. Failure to report the situation accurately and correctly can result in the destruction of the organization. Such a situation may be caused by an error or with the intent to increase or decrease the value of the organization. Finally, the primary role of auditing is to add value to the organization, not only by reporting the facts but also by preventing systematic errors, identifying areas for improvement, and promoting better management policies. The role of auditing in any organization is vital to its future. Through the audit process of various types, the organization can notice in time the weaknesses in terms of regularity, accuracy of financial statements, performance, etc. After analyzing the audit report, if there is will the management can minimize or eliminate the weaknesses or without the identified irregularities.

The use of large amounts of public funds requires higher and broader competencies for both management and auditing professionals. It requires that in addition to continuous professional growth, professionals also expand their audit scope, extending it to risk assessment and economic assessment, to ensure the most effective use and in the best possible way the scarce resources. Advancement of technology nowadays is a tool that enables fast and accurate data and in a very short time, leaving the necessary time for risk management, as errors and deviations can be caught and recorded at a time much faster. On the basis of the rapid global developments of recent years, this profession is also receiving due importance and appreciation.