History of SAO Macedonia



From 1991 until 1998, state audit in the Republic of Macedonia was carried out by the Directorate for economic and financial audit within the Social Accounting Office (transformed into Payment Operations Office in 1994). During this period, the employees were also involved in evaluation of enterprises with social capital for the purpose of and within the frames of privatization of social capital. On 01 February 1999, nine employees from the Directorate were transferred to the newly established State Audit Office.

The first State Audit Law


The first State Audit Law was adopted in 1997 (Official Gazette of the Republic of Macedonia no. 65/97). The Law provided for the scope of state audit, regulated the conditions and manner of conducting state audit on public expenditures, financial statements and financial transactions, and other matters related to the audit of state bodies, local self-government units, legal entities fully or partially financed by the Budget of the Republic of Macedonia, the budgets of local self-government units and the budgets of national funds, legal entities where the state is dominant shareholder, public enterprises, National Bank of the Republic of Macedonia, the Payment Operations Office, the agencies and other institutions established by law.

First revisions


The first audits were performed during 1998 and 1999, and the first Annual Report on performed audits and operation of the State Audit Office was submitted to the Assembly of the Republic of Macedonia in 2000.

Thematic audits


In the following years the State Audit Law was amended several times to incorporate the fundamental principles of the Lima Declaration and to comply with the standards and practice of the European Union. In addition, the competences of the State Audit Office were extended with new subject matter and auditees (EU funds and political parties), and the potential risk within auditees was introduced as an important criterion for selection of audits in the annual work program.