THE COMPONENT OF CONTROL WITHIN THE FRAMEWORK OF INTERNAL FINANCIAL CONTROL IN PUBLIC SECTOR SUBJECTS AT THE CENTRAL AND LOCAL LEVEL OF RNM

Shpenzim BEADINI, Hatibe DEARI-ZEQIRI, Etem ISENI

Abstract

In recent years, there has been growing demand for transparent financial reporting in developing countries, including the Republic of North Macedonia, as well as an accompanying expansion of the responsibilities of financial officers. Every time public sector entities fail in inefficient financial management, there is a call from interested parties to check and strengthen internal control to prevent failure. Large sums of money are lost due to internal control not working effectively. After financial failures, the focus is on strengthening checks and balances on entities to ensure that these failures do not occur again. Then, when discussions began to focus on the nature of internal control in public sector entities, there was a need for the incorporation of factors and processes that contribute to the construction of effective internal control systems, respectively the COSO Integrated Work Framework in the RNM legislation. Therefore, the purpose of this paper is to analyze and compare the performance over the years of the control activity component which is designed in a way to increase the value of the subject and to influence the improvement of financial discipline. The research underscores that without the proper functioning and development of internal controls and effective financial management, an entity cannot successfully achieve its objectives.

Pages: 191 - 199