COSO MODEL OF INTERNAL AUDIT CONTROL AND RISK MANAGEMENT

Abstract

The presented paper discusses the stages of formation and development of internal audit entities at the legislative level. It explains the essence, purpose and objectives of internal audit, as well as its mission at each stage of the implementation of state internal financial control, as the implementation of the system and proper functioning of internal audit in general is an important challenge for our country not only in fulfilling its commitments to European Union but as a lever which maintains proper functioning, and managing state funds lawfully, transparently, economically, efficiently and productively.

The paper also discusses the main purpose of the internal audit activity, what additional value can be created by the effective functioning of the internal audit entity in the institution, what challenges are in the process of its activities and the search for possible solutions.

Keywords: State internal control; Internal Audit; Risk management; Financial management