IMPLEMENTATION OF RECOMMENDATIONS ON THE AUDIT OF THE PERFORMANCE OF THE SUPERVISORY BOARDS OF TRADE COMPANIES ON THE OWNERSHIP OF LOCAL AND REGIONAL (SELF) GOVERNMENT UNITS

Abstract

The State Audit Office of the Republic of Croatia audits companies’ performance and gives recommendations for performance improvement. The Office reviews the implementation of the recommendations and establishes whether the companies acted in accordance with the recommendations. The aim of this paper is to determine whether local and regional self-government units-owned companies, whose supervisory boards’ performance were audited, implemented the recommendations given. In this context, it analyses the types of recommendations given, their occurrence, and failure to implement them. The analysis was conducted into the recommendations’ implementation reports. On the basis of the data collected, the recommendations were surveyed by application of statistical analysis method, comparison, and synthesis. In conclusion, the research results confirmed for a large number of non-implemented recommendations, the assumption that it is necessary to set the written rules and criteria for the appointment of the members of the Supervisory Boards. The results also show that the implementation of the recommendations both affects the line of business and has a positive impact on the public sector.