Internal Audit in the Public Sector

Mastering the theoretical and methodological foundations, doctrines and principles of internal auditing in the public sector, with understanding of the scope and structure of the public sector, difference between the part of the public sector which includes budgetary users and other segments that include public companies, a part of public institutions and other doctrines and principles for the establishment of the internal audit function in the public sector, relationship between internal audit and internal control, legal determination of this field with emphasizing the differences between the rules that apply to particular segments of the public sector, professional standards of internal audit, relationships, similarities and differences between internal and external audit, the basic methodological principles for conducting internal audit, including the reporting phase.

During the study of the planned teaching material students need to acquire the necessary knowledge and skills for understanding the teaching material specified within the set goals of studying the subject, and especially the basic principles of the current legal and professional regulations in this area in the Republic of Srpska, basic methodological principles for organizing the internal audit function and implementation of specific audits, the importance of which efficient and effective internal audit function has for the function of external audit, the impact of efficient and effective internal audit on the quality of the system of managing the public funds and public finance in general.

The subject content consists of basic thematic units: Introduction to internal audit (including legal and professional framework for the establishment of the internal audit function); Assessment of audit risk and types of internal audit; Audit methodology and the process of internal audit (from planning to reporting); Post-audit activities, with special emphasis on the use of the results of the internal audit and supervision (control) over the entire process of internal audit.

During lectures, the theoretical knowledge in the subject area is transferred to students with the use of Power Point presentations. Exercises are conducted by creating specific essays, considering audit issues, examples of audit reports and the like. Preparation and presentation of the seminar paper is done with the mandatory application of the methodology for the preparation of professional papers.

Colloquium I (0-20 points); Colloquium II (0-20 points); Final exam (0-50 points); Attendance (2point); Class activities (seminar papers, discussions, case studies) (0-8 points)

Đurasović, V. (2007). Internal Control and Internal Audit. Banja Luka: Association of Accountants and Auditors of Republic of Srpska; Kulina, D. (2012). State audit. East Sarajevo: University of East Sarajevo, Center for Publishing;