Transition, Vol. 24 No. 48, 2021.
Original scientific paper
RECENT TRENDS AND CHALLENGES OF THE OPERATION OF SMALL INTERNAL AUDIT DEPARTMENTS
Boris Tušek
; Ekonomski fakultet Zagreb
Abstract
In different types of business entities in the private and public sector, depending on the impact of organizational factors, industry characteristics, and type of organizational structure, the organization of the internal audit function will be different. Likewise, in different periods of activity of a business entity, parallel to its growth and development, the internal audit function will change and adapt to these impacts. In practice, different approaches, organizational solutions, and models of organization of the internal audit function are possible. When it comes to the organizational aspects of the internal audit function, the question of the size of the function is one of the issues that numerous authors, practitioners, and professional associations consider. In practice, internal audit departments are often divided into small and large departments. Related to this, the specifics of the organization and operation of small versus large internal audit departments, as well as their advantages and disadvantages, are discussed. In the context of the organizational and methodological features of the internal audit function, more and more attention has recently been paid to the specifics of operations, limitations and challenges of small internal audit departments as opposed to large departments. Related to this, appropriate guidelines and instructions that can help formulate the strategy for small internal audit departments in practice are given to the internal auditors. This paper presents possible guidelines, existing experiences, good practices, and challenges that form a good starting point for guiding the activities of small internal audit departments in practice and achieving an acceptable level of quality and results.
Keywords
Hrčak ID:
309053
URI
Publication date:
21.10.2023.
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