control of this type leaves an open space for those legal public actors entrusted with the public goods to use them in an illegal, uneconomic and inefficient way.
The state audit represents a part of an independent system of state control, which contributes to the enhancement of public officers’ responsibilities as well as increased work transparency and public sector management. Hence, there is a real need to appropriately research and present the external audit institute and provide specific recommendations that would in future lead to its better operation at the national level. This article covers the following thematic sections: the foundations of the pubic sector external audit institute through its definition and external audit typology; its differences compared to the other types of control; the history of state audit institute development and evolution; the overview of international standards, and in particular, the institutional and process aspect of the public sector external audit in Montenegro.
Key words: audit, public sector, control, standards, subject of audits, SAI,
international organization of state auditors, public finances