Pregledni rad

INTERNAL AUDIT IN THE PUBLIC SECTOR – CONTROL ENVIRONMENT, RISKS AND LEGISLATIVE REGULATION

Zvezdana Popović

Sažetak

Internal audit is an independent, objective assurance and consulting activity created with the aim
of adding value and improving the organization's operations. It helps the organization achieve its
objectives by ensuring a systematic, disciplined approach to assessing and improving the
effectiveness of risk management, controls and governance processes. It is established and
implemented through the internal audit unit or the Internal Audit Department/Internal Audit
Department. Through the role of internal audit, value is added and the form of controls is
improved. The system of internal financial controls in the public sector consists of financial
management and control (FUK), internal audit and the Central Unit for Harmonization of
Financial Management and Control and Internal Audit, established at the Ministry of Finance.
The control environment consists of the personal and professional integrity and ethical values of
managers and employees in the subject, the way of leading and managing the subject,
determining the subject's missions and goals, organizational structure, hierarchy in terms of
authority and responsibility, rights and obligations and levels of reporting, as well as written
rules and human resource management practices and employee competence. Risk management is
the process of identifying, assessing, monitoring and controlling circumstances that may
adversely affect the achievement of the established goals of the entity and taking the necessary
measures to reduce the risk to the level of reasonable confidence that the goals will be realized in
the entity. The internal audit function in the public sector is performed in accordance with the
law, the International Standards for the Professional Practice of Internal Auditing (IIA), the
methodology and the Instruction on Internal Auditing in the Public Sector, the Code of
Professional Ethics for Internal Auditing, the Charter of Internal Auditing and the internal audit
work regulations.
The survey was completed by 9 respondents, in the location of Bosnia and Herzegovina in July
2023. 33.3% were male and 66.7% were female. The system of internal control and internal audit
was established in 100% of respondents. The function of internal auditor within the internal audit
unit or company is performed by 55.6% of respondents, and 44.4% of respondents perform other
tasks. 55.6% of the respondents have a certificate of expertise for performing the given job, and
44.4% do not. 55.6% of respondents answered that a Financial Management and Control system
was established in their entity or company, and 44.4% that it was not.

Ključne riječi

Internal audit in the public sector; internal Audit Unit, Internal Audit Department/Internal Audit Departments; audit Committee; international Standards for the Professional Practice of Internal Auditing (IIA); control environment; risks and legislative regulation.

Hrčak ID:

336243

URI

https://hrcak.srce.hr/336243

Datum izdavanja:

24.3.2024.

Podaci na drugim jezicima: hrvatski

Posjeta: 796 *