CONSEPTUAL ISSUES OF INTERNAL AUDIT

Abstract

The characterization of internal audit and the scope of organizational functions are perceived differently by stakeholders. Formed much later than external auditing, internal auditing developed relatively quickly, and that too in several directions. Currently, the most common types of internal audit are operational audit, management audit and performance audit. Studies show that in practice, the listed types of internal audit overlap in their functions, which not only causes confusion among audit beneficiaries, but also takes additional resources from the organization.

The article clarifies the functions of operational, management and performance audit from the point of view of the beneficiaries. Operational audit pursues the identification of efficiency reserves in the implementation of various entrepreneurial functions, which are related to production, service provision. The task of management audit is to promote the functioning of the effective management system used in the organization. And the performance audit is mainly related to the public sector organizations and aims not only to find out the reliability of the budgets of state finances, but also their effectiveness in terms of the expectations of the beneficiaries.

Therefore, the areas of operational, management, and performance auditing may intersect somewhere in organizations. And the smaller the scope of managerial, operational and performance audit functions, the more effective the organization of internal audit in organizations.