engleski

AUDIT OF PUBLIC PROCUREMENT EFFORTS AND REVIEW OF RECOMMENDATIONS

The paper outlines the research on the implementation of the recommendations given to companies after public procurement performance audits. Performance audits were conducted by the State Audit Office, which compiled individual reports. Companies were given recommendations in order to improve their business operations. After a certain period, audits were conducted to determine whether the given recommendations had been implemented. The paper explores the possibilities of improving the efficiency of public procurement procedures in companies and the impact of such improvements on business operations. Based on the research conducted in the companies, it was established that the progress made by the companies included in this paper was satisfactory. The given and implemented recommendations were studied and analysed. Conclusions were reached regarding the impact of the implemented recommendations on the companies’ business operations. Legal framework and the significance of public procurement in business operations were also researched. The paper used the data from the audits performed by the State Audit Office, as well as from other reference materials. The research described in the paper pertains to seven companies in which a public procurement performance audit was conducted. Public procurement performance audits were conducted for the period from 2011 to 2013 in three companies, the period from 2013 to 2015 in another three companies and the period from 2012 to 2014 in one company. The paper also mentions other companies in which public procurement performance audits were conducted (six companies), whose public procurement procedures were also assessed in terms of efficiency. However, for them, no follow-up audit was conducted to review the implementation of the given recommendations up until the moment of writing this paper. Each performance audit was followed by a report containing an assessment of the public procurement system. Another report was also made after conducting a follow-up audit to review the implementation of the given recommendations. The paper confirmed the assumption that companies can significantly influence their financial result by implementing the recommendations given in the public procurement audits. Monitoring the implementation of the given recommendations in entities in which an audit was conducted highlights the importance and role of audit in the business process, improves transparency and public influence.

Auditing, Business, Efficiency, Enterprises, Recommendations

Economic and Social Development 36th International Scientific Conference on Economic and Social Development – "Building Resilient Society" Supported by: President of Croatia, Kolinda Grabar - Kitarovic