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Substantiating The Role And Importance Of Public Financial Audit In The Efficient Management Of Public Financial Funds Through The Lens Of Public Sector Risks

Author

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  • Vasile SECRIERU

    (Academy of Economic Studies of Moldova, Republic of Moldova)

Abstract

In this article, the author starts from the observation that public financial management, including public financial control and audit, must take into account the problems and risks inherent in the public institution model itself, but also those specific to a country and its public sector at a certain time. Applying methods such as the method of scientific abstraction, the method of induction, the method of deduction, analysis and synthesis, the author comes to the conclusion that the safest public sectors, implicitly public institutions, are those from countries with developed democracies, namely - Denmark, Finland and Norway, followed by those from Germany and Canada. The following, according to the level of risks, are some post-socialist countries: Estonia, Slovakia, Slovenia, Lithuania, Latvia, Poland. Hungary, Romania and Bulgaria represent countries with public sectors facing high risks related to corruption and government effectiveness. Armenia and the Republic of Moldova face high risks at the level of the sector and public institutions. This finding suggests the conclusion about the lack of efficiency and effectiveness of the internal and external public financial audit activity.

Suggested Citation

  • Vasile SECRIERU, 2023. "Substantiating The Role And Importance Of Public Financial Audit In The Efficient Management Of Public Financial Funds Through The Lens Of Public Sector Risks," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 8(1), pages 153-160.
    • Handle: RePEc:brc:brccej:v:8:y:2023:i:1:p:153-160
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    References listed on IDEAS

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    1. Leandro Medina & Mr. Friedrich Schneider, 2018. "Shadow Economies Around the World: What Did We Learn Over the Last 20 Years?," IMF Working Papers 2018/017, International Monetary Fund.
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    More about this item

    Keywords

    financial audit; macroeconomic indicators; risks; public sector;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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