Legal Character of Internal Audit in the Light of the Regulations of the Act about Public Finances
Legal Character of Internal Audit in the Light of the Regulations of the Act about Public Finances

Summary/Abstract: Internal audit known in the legislation of the European countries as an institution whose task is to secure transparency of the use of public resources , appeared only within the framework of the amendment of the Act on Public Finances of 27 July 2001 and it has been functioning as a legal institution since 1 January 2002. The basis for its implementation was the duty to perform obligations of Poland towards the European Union. This fact had a crucial impact upon the conditions of shaping both the contents of that institution and its legal nature. Throughout the years 2001-2009, the way of defining the internal audit in the Polish financial law has been changing . The final sounding indicated by the contents of the regulation of Article 271 of Public Finances of 2009 is a specific legal compromise between the followers of treating an internal audit as a form of an internal control or those who treat it as an independent legal institution connected with managerial control. On the basis of the binding legal status , an internal audit is an independent and objective activity whose task is to support the minister of a particular department or a manager of a unit to attain targets and tasks through systematic evaluation of managerial control and advisory activities. The presented definition , though formally connected with regulations included in the mentioned Act on Public Finances, in the opinion of the authors, however, does not give a simple answer when it comes to subjective and objective range of an internal audit within the framework of the Polish system of public finances and regards the placement of that institution in the system of financial control determined by legal regulations.

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