Enhancing Corporate Transparency and Accountability Through Public Auditing: a Cross-Country Analysis of Regulatory Practices

The purpose of this study was to establish the role of public audit in ensuring transparency and accountability in corporate governance under varying institutional systems. The analysis encompassed six companies from Austria, Germany, and Kosovo (two from each country), operating in strategically significant sectors – energy, telecommunications, and banking. The research period covered 2020-2024. A case study methodology, along with content analysis of audit reports, was applied to assess practices in response to audit recommendations. The findings revealed a systemic influence of auditing on managerial processes: in Germany and Austria, the implementation rate of audit directives reached 87.4% and 81.2%, respectively, accompanied by the digitalisation of reporting, adoption of blockchain solutions, and development of internal response plans. Companies in Germany and Austria utilised national e-reporting platforms and XBRL protocols, which facilitated timely audits and access to supporting documentation. In contrast, the implementation rate in Kosovo did not exceed 43.6%, with over 50% of audits still conducted on paper, significantly diminishing control effectiveness. The incidence of accounting violations, double recording of expenses, and documentation inconsistencies was higher among Kosovar firms. The results indicated a strong correlation between digital integration, organisational responsiveness to audit, and the quality of managerial adjustments: in German firms, the average time to respond to auditor remarks was reduced to 5 days, whereas in Kosovo it remained unchanged – over 21 days. The study proposes a conceptual model integrating digital, behavioural, and regulatory factors to explain audit effectiveness under institutional risk conditions. The findings are practically relevant for countries with transitional economies, particularly for developing digital control infrastructures and enhancing corporate reporting transparency.