engleski

System of internal controls in the public sector of the Republic of Croatia

The system of internal controls in the public sector is defined as a complete system of controls established by the heads of budget users with the aim of successful management and accomplishment of tasks. Pursuant to the Law on the System of Internal Financial Controls in the public sector, internal audit is part of a comprehensive internal control system, as an independent and objective activity of providing expert opinion and advice with the aim of adding value and improving the business of budget users. and improving the effectiveness of risk management, control and management processes. The system of internal controls in the public sector of the Republic of Croatia is based on the concept of PIFC (Public Internal Financial Control) developed by the European Commission to assist candidate countries in reforming their internal financial control systems. The concept is based on international standards of internal control and practices of European countries. Due to their complexity, internal control systems require monitoring and assessment of their adequacy and functionality through a system self-assessment conducted by management through internal and external audit activities. The self-assessment of the system is important in the process of determining the risks that threaten the achievement of certain goals and enables timely and adequate response and the establishment of certain controls. The system of internal controls is in the function of ensuring proper, legal, economical, efficient and effective management of budget funds, ie good financial management. The aim of this paper is to analyze the system of internal controls of the public sector and to explain and present the process of conducting internal control in the public sector of the Republic of Croatia.

control ; internal control ; system of internal controls ; audit ; public sector

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