Study on Providing Public Internal Audit Function in System of Cooperation
Author:
Adrian VINTILESCU BELCIUG, Ph. D.; Lăcrămioara CORCHEŞ, Ph. D.; Daniela CREŢU, Ph. D.; Adriana LUPU, Ph. D. Student
JEL:
H 83, M42
DOI:
Keywords:
internal audit, cost-benefit analysis, Balanced Scorecard
Abstract:
According to the new provisions on cooperation system to provide internal audit function, this objective can be achieved on the basis of free consent of two or more local public entities which have not established their own internal audit department.\r\nThe criteria underlying the establishment of the internal audit department cooperation system involves grouping several local entities, for instance by geographical area or the main communication routes. Ensuring the internal audit function on this system is an alternative of providing audit function by organizing internal audit department.\r\nThis study takes as starting point the premise that internal audit is an independent and objective activity that provides assurance to the entity regarding the degree of control over operations, guide it to improve its activity and contribute to adding value.\r\nTherefore, the authors considered useful a comparative analysis of the added value provided by the internal audit performed in a cooperative system and by its own department.\r\nThe present quantitative study was made through a cost-effectiveness analysis, the effectiveness being measured by a scorecard.\r\nThe result of this study is a quantitative model of decision based on updating the net added value.\r\n