Original scientific paper
https://doi.org/10.20867/thm.12.2.5
DEVELOPMENT AND THE CURRENT PROFILE OF INTERNAL AUDITING – THE RESULTS OF THE TWO EMPIRICAL STUDIES IN SLOVENIAN ORGANISATIONS
Marjan Odar
; aculty of Economics, University of Ljubljana, Ljubljana, Slovenia
Bojana Korošec
; Faculty of Business and Economics, University of Maribor, Maribor, Slovenia
Robert Horvat
; Faculty of Business and Economics, University of Maribor, Maribor, Slovenia
Abstract
Results of (the first) two empirical studies with the aim to reveal the state-of-the-art and development of internal audit in Slovenia are presented in the article. Internal auditing, one of the cornerstones in modern corporate governance, has a relatively short tradition in this new EU member country. Nevertheless, beside the first and mandatory established internal audit units, which were initiated by the corresponding industry’s laws in financial services in the early 90s, there is already evidence of a significant and growing number of non-mandatory, voluntary established internal auditing units in other industries. And a variety of internal audit practices regarding establishment, reporting lines, size and scope of work performed by internal audit units, and professional qualifications of internal auditors characterizes the current profile of internal auditing in Slovenian organisations. It can be concluded that internal auditing in Slovenia is following the trends of practice in developed countries, although, in some cases internal auditors are facing problems, mainly due to their lack of work experience, to (un)professionality of corporate
governing bodies, and to top management’s lack of awareness or even misunderstanding of the role of internal auditing in corporate governance.
Keywords
Internal audit; development; corporate governance; Slovenia; non-mandatory audit
Hrčak ID:
181224
URI
Publication date:
30.12.2006.
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