Internal Audit as a Quality Assurance Instrument: A Case Study from Garment Manufacturing Enterprises in the Western Balkan Region
Internal Audit as a Quality Assurance Instrument: A Case Study from Garment Manufacturing Enterprises in the Western Balkan Region

Author(s): Jolta Kacani, Sajmira Kopani
Subject(s): Social Sciences, Business Economy / Management, Socio-Economic Research
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Internal audit; Control environment; Circular garments; Quality standards
Summary/Abstract: The European Strategy for Sustainable and Circular Textiles (2022) aims to ensure that by 2030 garments have a longer life, are made as much as possible from recyclable material, and are free of harmful substances. For garment producers, this means compliance with mandatory requirements along the value chain focusing on the entire lifecycle of garments, while supporting the green and digital transitions within the industry ecosystem. Compliance with the new environmentally friendly standards required for garment exports in the European markets demands an improved control environment and consolidated internal audit procedures within manufacturing enterprises. The objective of this paper is to evaluate the effectiveness of the current internal audit procedures in garment manufacturing enterprises located in the Western Balkan region and exporting to end customers in the European market and other international markets. In doing so this paper analyses a sample of thirty enterprises according to 5Cs elements of internal audit. The 5Cs in the internal audit include the criteria, conditions, causes, consequences, and corrective actions within the sample of the enterprises. Based on 5Cs elements new improvements in the standard operating internal audit procedures in garment manufacturing enterprises are proposed in line with new European strategies.

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