INTERNAL AUDIT AND ALBANIAN SMES
Autor (i): Dr. Doriana Pano Prof. dr. Artur Ribaj Dr. Valbona Cinaj
Cuvinte cheie: Internal audit, SMEs, risk management, control, activities, monitoring and evaluation.
Abstract:
Small and medium-sized enterprises have long been recognized as engines of economic growth and
development. The impact of small and medium enterprises even in the global economy are very important for
increasing employment and reducing poverty. Studies have shown that majority of SMEs die prematurely, before
reaching their goals due to poor management resulting from inadequate, weak, uncertain accounting and financial
information, as well as the lack of regular auditing and risk management. The purpose of this research is to access the
impact of internal audit at Albanian SMEs. The sample for the study consists of 110 entrepreneurs and 80 managers.
Primary data for the study were collected by a combination of survey questionnaire and semi-structured interviews.
Findings from the study highlight the lack of standard audit system and financial records has been a major obstacle to
statutory audit of many SMEs, and by extension negatively affects their performance as they find it difficult to
convince stakeholders (creditors, suppliers, tax authorities, etc.), that there was regular supervision by an independent
auditor for their business activities. The finding further revealed that this can be eliminated through the adoption of a
sound audit system that complies with the Auditing Standards. It has therefore been recommended that SMEs should
be encouraged to embrace internal auditing.
Small and medium-sized enterprises have long been recognized as engines of economic growth and
development. The impact of small and medium enterprises even in the global economy are very important for
increasing employment and reducing poverty. Studies have shown that majority of SMEs die prematurely, before
reaching their goals due to poor management resulting from inadequate, weak, uncertain accounting and financial
information, as well as the lack of regular auditing and risk management. The purpose of this research is to access the
impact of internal audit at Albanian SMEs. The sample for the study consists of 110 entrepreneurs and 80 managers.
Primary data for the study were collected by a combination of survey questionnaire and semi-structured interviews.
Findings from the study highlight the lack of standard audit system and financial records has been a major obstacle to
statutory audit of many SMEs, and by extension negatively affects their performance as they find it difficult to
convince stakeholders (creditors, suppliers, tax authorities, etc.), that there was regular supervision by an independent
auditor for their business activities. The finding further revealed that this can be eliminated through the adoption of a
sound audit system that complies with the Auditing Standards. It has therefore been recommended that SMEs should
be encouraged to embrace internal auditing.
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