Fatmir Mehmeti1, Vjollca Ibrahimi2

(1. Audit Company “Etika”, 40000 Mitrovica, Kosovo, 2. Tirana University, Tirana, Albania)

 

 

Abstract: Audit is a process of verification of contentions of management over financial statements. The role of audit has an impact in increase of quality of financial reports and influences the improvement of performance of the company and the modern and essential understanding of determining the quality, from the viewpoint of diversity and characteristics and multitude of claims made by users of financial reports. The growth and globalization of businesses, pressure of the market for improvement of operations, rapid change of business conditions created the need for control, but it should be made sure that the control is as effective as possible and that it properly unveils the risks. In order to meet this need, internal auditors are using continuous audit in order to maximize the effectiveness of their work. The auditor preserves the independence of internal audit and the objectivity in assessing the effectiveness of controls, risk management and governing processes. Constant monitoring is a process that should be assessed by the internal auditor in order to observe whether the management is acting according to business policies, procedures and processes, namely whether it is acting effectively. However, continuous audit usually enables auditors to assess the adequacy of manager’s function and conduct monitoring with the view of identifying and assessing the fields of risk.

 

 

Key words: financial statements; audit; internal audit; monitoring; control

 

JEL code: G00