Internal Control and Audit in Germany’s Ministries and Agencies

Abstract

The article discusses the government internal audit system in Germany. The author describes the transformation of German decentralized model into a model with an unified system based on internal audit services in public governance bodies and functioning without central service of government internal audit. It is noted that the ministries and agencies of the Federal Republic of Germany do not have a number of characteristics recommended by the EU regulatory document and already implemented in other developed countries, i.e. audit committees, certification of auditors, harmonizing structure within the responsible ministry. The results of a recent survey conducted by the German Institute of Internal Auditors present an adequate picture of current internal control and audit’s practice in the public governance sector, including its weaknesses – risk management and audit personnel’s qualification. The analysis may be useful in determining the ways to improve the system of internal control and audit in Russian public governance bodies, which is just starting to develop.

Keywords

• germany
• internal control
• internal audit services
• public governance bodies