What is Public Audit
Public Audit aims at independent and objective assessment of the Public Finance Management, as well as determination of how effectively are managed public resources to achieve intended results. With assessing the above mentioned, auditor supports public sector in improving accountability and operational activities, as well as building trust with public and other stakeholders.
Public Audit ensures:
Revealing of Public Finance Management deficiencies;
Providing corresponding recommendations for prevention of deficiencies;
Determination of trends and new challenges;
Audit process involves following stages:
Audit Planning - auditor assesses the risk of material misstatements based on understanding and evaluation of an audited entity and its environment, including internal controls, internal audit, risk management of the entity etc.
Field Work – auditor obtains sufficient and appropriate audit evidence, to support its audit opinion;
Audit Reporting – auditor evaluates the results, summarizes findings, makes conclusions, prepares recommendations for elimination of detected deficiencies, as well as audit report is developed and approved and opinion is provided.
Recommendation follow-up represents the final stage of the audit, during which the State Audit Office reviews the implementation of the recommendations issued to the audited entity according to the pre-determined time frame;
State Audit Office performs three types of Public Audit:
Financial Audit, the objective of which is to provide reasonable assurance whether the financial statements are presented fairly, in all material respects, and/or give an opinion on whether the financial statements were prepared in accordance with the regulatory and legal requirements and an applicable financial reporting framework.
Compliance Audit, the objective of which is to assess whether the activities of public sector entities are in accordance with the relevant laws, regulations and authorities that govern such entities..
Performance Audit, which is an essential tool for assessing public management economy, efficiency and effectiveness.