INTERNAL AUDIT WITHIN THE SYSTEM OF FINANCIAL CONTROL

Abstract: The results of the empirical study of internal audit function in Bulgarian enterprises allow the following conclusions and recommendations to be made: 1) In the surveyed enterprises and banks, information – evaluation function of internal audit is best developed; 2) Not sufficiently developed are activities to ensure quality and richness in content of internal audit control and methodological functions; 3) Advisory function is moderately advanced and depends on internal auditors and management’s professional skills; 4) To differentiate and define the role and place of internal audit within the system of financial control it needs to be improved in several direction: – Organizational and legal status – to this end it is advisable the mission and strategy of development of internal audit to be defined ensuring its independence with appropriate channels of reporting and interaction with the Audit Committee; – Scope and content of audit engagements – it is recommended they to be focused on main risks in the systems of financial control, risk management and business development strategies; – Improving internal audit methodology and technology – this can be achieved by adapting and coordinating the audit plan with changes in the organization, financial risks, methods of external independent audit, use of software and self-assessment of risk and control in the audit activities of internal auditors