Administrative-legal and organization-management conditions of audit in the public finance sector units

Abstract

Internal audit is performed in a diverse legal and cultural environment, for organizations that differ in their goals, size, complexity and structure. Internal auditing is performed by people both inside and outside the organization. Although the aforementioned differences may affect the practice of auditing in different environments, the application of the International Standards for the Professional Practice of Internal Auditing is an essential condition for the internal auditor and internal audit to fulfill their duties. Internal control is an immanent feature of the management process. In the functional sense, it is performed by each employee, in the institutional sense by a separate internal cell. Hence, the control system consists of: internal cells in the organizational structure, internal regulations, procedures and other control mechanisms in the enterprise/unit. Internal control operates on an ongoing basis and can respond immediately to any irregularities. Financial control is a special type of internal control - it deals with finances. Internal audit comes into contact with internal control during one of the many activities it undertakes, namely the examination and evaluation of the effectiveness of the existing internal control system.

Keywords

• public finance
• public finance law
• administrative law
• management control
• auditing in the public sector
• management control standards
• new public management