Financial Crime World

Macedonia’s Compliance Audits in Finance: A Review of Public Sector Accounting, Auditing, and Control Systems

Overview

A recent study by Atanasko Atanasovski and Zoran Minovski provides a comprehensive overview of the organization and territorial structure of the Former Yugoslav Republic of Macedonia (FYR Macedonia), including insights into central government and local budgets. The focus is on accounting and financial reporting, audit, and oversight in the public sector.

Challenges Facing FYR Macedonia

As a candidate country for accession to the European Union, FYR Macedonia has been undergoing significant reforms in its public sector accounting and auditing systems. One of the key challenges facing the country is the transition from cash-based accounting to accrual-based accounting, as well as the implementation of International Public Sector Accounting Standards (IPSAS) for financial reporting.

Building Capacity within the State Audit Office

The authors emphasize the importance of building capacity within the State Audit Office, which has been tasked with overseeing the public sector’s financial activities. The office has developed a strategy for its development and is working towards increasing its effectiveness in this area.

In related news, FYR Macedonia officially changed its name to the Republic of North Macedonia in February 2019.

Conclusion

The study concludes by emphasizing the need for continued reform and development in public sector accounting and auditing in FYR Macedonia, particularly in light of its upcoming accession to the EU. The authors suggest that the country will need to continue to build its capacity in this area if it is to effectively manage its finances and ensure transparency and accountability.

References

  • Ministry of Finance (2006). Strategy for the Development of Public Internal Financial Control in the Republic of Macedonia.
  • Minovski, Z., Hughes, J., & Kocevski, A. (2016). Transition to Accrual Accounting in the Public Sector. Journal of Contemporary Economic and Business Issues, 3(2), 75-88.
  • Nikolov, M., & Dimovska, G. (2017). Assessment of Legal and Regulatory Requirements Related to the Work of the State Audit Office.
  • State Audit Office (2012). Strategy for Development of the State Audit Office 2013-2017.
  • World Bank (2017). Overview, Country Context for FYR Macedonia.

Note: The article is based on a study by Atanasko Atanasovski and Zoran Minovski titled “Public Sector Accounting, Auditing and Control in the Former Yugoslav Republic of Macedonia” published in the book “Public Sector Accounting, Auditing and Control in South Eastern Europe”.