The Role of Internal Audit in Risk Management– Evidence from Private Sector of Kosovo

• Main Authors: Hysen Ismajli, Mimoza Guda Ferati, Agon Ferati
• Format: Article
• Language: English
• Published: Danubius University 2017-10-01
• Series: Acta Universitatis Danubius: Oeconomica
• Subjects: unemployment; inflation; economic growth; Internal auditing; private companies; risk management
• Online Access: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/4146/4213
• ISSN: 2065-0175; 2067-340X

The aim of this study is to examine the role of internal audit function in risk management and challenges that influence its function in private companies in Kosovo. The method chosen for the research is based on structured questionnaire survey sent to all head of internal audit of top 21 largest private companies in Kosovo and conducted several interviews with them. Based on responses received, the role of internal auditor in the risk management is perceived to be very important, but first there are many activities within the company which must be improved to have fully functional audit department. Further, results show that internal auditors understand the concept of risk management but restricted access from business owners to core and confidential information, inexperienced internal audit staff, insufficient funds allocated to develop internal audit department, and lack of management interest are barriers that leads to improper performance of internal audit in risk management and non-functional internal audit. As the role of internal audit in the private sector in Kosovo has been very rarely empirically examined, this study attempts to contribute to future studies that relate to a very important issue such as risk management.