Financial Crisis and the Role of Auditing Services in its Management - Economicus

by, Dr. Hysen Muceku

Abstract

Sustainability and efficiency of financial and operational systems is one of the biggest challenges facing organizations today the public sector as well as non-public sector. Failure to implement the standards and principles of good governance has a major impact in today’s crisis economies are going through in many countries. An important role in the management factors that affect various risks that lead to the crisis have systems of internal control and audit services. Audit services help increase managerial accountability by providing reasonable assurance and advice consultancy regarding the accuracy of financial statements, security systems of internal control and effective management of risks facing organizations (public and non-public). The role of audit services is to provide a fair description of the issues, resources, roles and responsibilities combined with useful recommendations, helping stakeholders to reconsider problems and government programs. Auditors help decision makers by assessing whether the organizations are doing what is expected of them and what they are in charge, by spending funds for the intended purposes, and in accordance with the legal and procedural framework. Efficient audits can provide answer for such questions as: are policies implemented by considering the purpose for which it was designed? Have managers implemented effective systems of risk management, control and governance?