PROCUREMENT PROCEDURES IN THE FUNCTION OF IMPROVING COMPANY BUSINESS CONDUCT

Abstract

The subject matter of this paper are activities related to the implementation of public procurement in companies owned by the Republic of Croatia. The field of public procurement is of great importance both for the economy and for companies, because it has positive effects on the economy, but also contributes to significant savings to clients, i.e. companies. The field of ​​public procurement is the subject of interest of the public. Rational approach to public spending is a priority in EU Member States. Public procurement payers in the European Union are spending significant resources for procurement of goods, works and services. The efficiency of public procurement has become important for Member States. Public procurement is a field of interest in company business conduct. This paper examines the possibilities of improving the efficiency of public procurement in companies. The research is based on data on effectiveness audit of the procurement system in ten companies owned by the Republic of Croatia. The analysis of the value of procurement conducted, efficiency recommendations and the possibility of their influence on improving business conduct have been performed. This paper confirmed the importance of the implementation of procurement procedures and their meaning and impact on the world economy as a whole, and its importance for companies in improving business through activities in the field of implementation of recommendations related to the effectiveness of the procurement system. The analysis method is used to process data on the value of public procurement, and the method of synthesis combines the data and comparison method is used for comparison of companies. The opportunities for improving business by implementing the recommendations are different. The logistics system of the company has the task of ensuring optimal amounts of all material, information and value flows in the transformation process of the company. Successfully planned, organized and connected all logistics functions are a prerequisite for making decisions on business conduct, which is reflected in the data reported in the financial statements that serve the owners, the public and other users. The auditor's opinion is a confirmation of the value and credibility of financial statements.

Key words: audit, public procurement, company, efficiency