Financial audit in public institutions

Abstract

The paper is based on the analysis of the role and needs of the audit in the financial analysis of entities by addressing internal control and accounting reform. We will try to argue the inseparable link between accounting and control, mutual influence between the accounting system and internal control, and the relationship between them. Transparency policies and accounting policies used are guaranteed by internal control through internal audit, external audit, and financial audit, and the interest of investors is cantered and concerned with the degree of internal control over the management of financial resources. The place and role of the audit to manage risks and provide recommendations on internal financial control. How users of financial information from entity development and investment opportunities depend to a large extent on the credibility of financial statements. Emphasis is placed on the assessment of the audit or the management of internal control in the management of financial resources, which involves the assessment of the internal control, including the quality of the accounting information provided in the public financial statements. JEL: M42, G34, H83; CZU:657.6:657.15.