The history of audit development in the world and in Albania. External and internal audit, the differences between them

Msc. Pjetër Ndreca, Prof. Asoc. Dr. Palok Kolnikaj, Dr. Behar Male
Ministry of Finance



In this article the authors aim to provide a comprehensive concept on audit activity, which in practice often confused with the Internal Control system (IC) and with the system of Financial Management and Control (FMC).
Referred to the historical facts about this activity we will explain the need for audit services and its necessity as an independent service that improves the governance of public organizations and the private sector. Through historical facts about the audit activity, we will explain the history of audit development.
The authors aim to provide a comprehensive concept on the types of audits and the role that they play in the development, implementation and enforcement of the internal control system. Explaining the types of auditing emerges the necessity of External Audit and Internal Audit as the two activities complement each other, but are not the same thing. Also explaining the main object of activity of the External Audit and Internal Audit will give the differences and common parts of those activities.
Referring to historical facts and how the Internal Audit is organized, will also provide some of the names of the External Audit structures currently operating in different countries of the world, but that essentially accomplish the audit activity. Based on the history of the birth and development of the audit will give the main conclusions on this activity.

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