Public Auditing in Transition Economies: The Role of Public Auditing in Strengthening Public Sector Integrity and Mitigating Corruption Risks

Abstract

Public auditing is extensively acknowledged as an essential foundation in combating corruption and promoting good governance, particularly in transitional economies characterized by fragile institutions and inadequate accountability frameworks. The objective of this article is to examine the significance and efficacy of public auditing in combating corruption in the Republic of North Macedonia. The research employs a qualitative case study methodology, analyzing legislative structures, formal audit reports, and pertinent policy documents, utilizing institutional theory. The findings indicate that North Macedonia has made significant strides in conforming its public auditing framework to global benchmarks; yet, substantial obstacles persist in executing audit recommendations, fostering inter-institutional collaboration, and enhancing institutional independence. The research indicates that the anti-corruption capacity of public auditing is inadequately utilized and highlights the disparity between formal institutional frameworks and practical implementation. The research contributes to the current understanding of public sector accountability by providing empirical data from a transitional economy and offering policy-relevant recommendations for enhancing follow-up processes and the efficacy of anti-corruption governance.