INTERNAL AUDITING ROLE IN BANKS IN BOSNIA AND HERZEGOVINA

The role of internal auditing in banks in Bosnia and Herzegovina has been presented in this paper. Internal auditing as a relatively new profession is rapidly developing and its growing importance is an analysis of the manner and practice of internal auditing functioning in Bosnia and Herzegovina banks. The purpose of the research is elaboration of internal auditing based on risk estimation, new challenges which the internal auditing faces as well as analysis of practice and presentation of results of internal auditing functioning in Bosnia and Herzegovina banks. This paper gives a reply to the question how senior management and the employees in banks understand role, function and importance of internal auditing in them. Researches carried out for the purpose of this paper are searching for the answer to the question on what kind of internal auditing is meant in Bosnia and Herzegovina banks, what its role and importance are and what is specific in carrying out internal auditing in banks. We expect that our researches will make possible testing and proving the stated hypothesis: that internal auditing in banks can fulfill its role and help bank management to resist successfully the challenges they are facing only if they apply in their work modern, systematic approach to auditing focused on the process on risk managing to which the bank is exposed. In contemporary business conditions it has been evidenced that the approach of traditional internal auditing based on control is not adequate any more or sufficient and that it cannot give the needed support to those responsible for bank management, which is necessary for effective realization of goals