PUBLIC INTERNAL AUDIT: INTERNATIONAL SCOPE
Current paper analyses public internal audit as a part of internal control. There has been revealed that there are functional and operational differences between internal audit and internal control. The European region is considered to be a stringent along with North America in terms of the use of International Standards for the Professional Practice of Internal Auditing. However, the rate of error in the management of EU funds stays constantly above the 2% materiality threshold. Whereas the management standards of the EU funds provide for particular governing structures, the overarching principles of Public Internal Control (PIC) apply in broad terms. The PIC Network cannot conduct expertise on the particular technical requirements in relation to EU funds and the same is true related to particular reactions to individual findings. In the light of this, we consider the practice of Public Internal Audit in Western Europe region – as strict region in terms of Public Audit practices – in comparison with other regions, to identify benchmark features of Internal Audit. On the basis of Internal Audit around the World Survey, 2014 we have made comparison of audit procedure Western Europe and rest of the world according to the following indicators: internal audit activity that is cosourced/outsourced, frequency of the reporting to the Audit Committee or Senior Management, internal auditing policies, internal audit activities, tools and techniques of internal audit, differences in main competences, behavioral and technical skills.
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