IMPROVING THE MECHANISMS FOR RAISING THE QUALITY AND EFFECTIVENESS OF INTERNAL AUDIT IN BUDGET ORGANIZATIONS

Abstract

The article examines the mechanisms for raising the quality and effectiveness of internal audit in budget organizations. Quality assurance requirements established by the IIA Global Internal Audit Standards and INTOSAI pronouncements are analysed, and the reasons why compliance-based quality assessment alone fails to capture the actual influence of internal audit on management are discussed. The study distinguishes quality as a property of the audit process from effectiveness as a property of its outcome, and argues that both must be measured together. As a result, an integral index of internal audit quality is developed, based on the comprehensive assessment of the organizational, methodological and outcome dimensions of the internal audit of financial errors and irregularities.