engleski

Internal audit and control trends in the public sector of transition countires

The need for effective and efficient management in public sector has led to increased role of internal audit and control. Performance budgeting, accrual accounting and accountability for results require different type of audit and control than in the past. Internal audit and control in modern conditions demand more than reconciliation with the normative framework. Therefore, it is necessary to move toward controlling and auditing for results. Thereby, improvement of internal audit and internal control systems is crucial to helping public managers achieve results and make government management more efficient and effective. In order to achieve mentioned goals, it is necessary to implement Public Internal Financial Control (PIFC) in government entities. PIFC is set of principles internal financial controls system established for the purpose of controlling, auditing, supervise of the use of national budget and European Union budget and funds, but the goals and purpose of PIFC can be set up broader. General goals include perform business activities on correct, ethic, economic, efficient and effective way ; conformity of business with legislative framework ; protection of assets and other resources from losses caused by badly governance, unjustified using and discontinuity and fraud ; strengthening accountability for the successful realization of the tasks ; and timeliness financial reporting and monitoring operating results. PIFC must be understood as completed and consolidated system of internal supervision that includes both internal audit and internal control. This paper aims to examine current practice and trends in developing internal audit and control in public sector of selected transition countries: Croatia, Slovenia, Serbia and Bosnia and Herzegovina. Precisely, we will give comparison of main characteristics of internal audit and internal control in before mentioned countries. The primary focus will be on following parameters: types of internal audit and internal control, human resources, legislative framework and systems of funding. The main result of this paper will be highlighting current situation in developing internal audit and internal control in selected countries and distinguishing certain similarities and differences that are significant for further development of internal supervision in this countries.

public sector ; internal audit and control ; transition countries ; public management

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