The audit is an activity that contributes to improve the operation of businesses. This is achieved through an audit that determines the veracity of the financial statements, assessing whether the operation is in accordance with the laws etc.. The management of the business entity that is audited, comprehend risk factors and receive advice from the auditor to reduce those factors. Thus the business entity receives information and suggestions for the development and harmonization of systems of internal control. Therefore the developed market economies require adhering to rigorous standards for selecting and educating future auditors.
Having in mind the enormous importance of auditing in enterprises, particular emphasis is put on the training of auditors to the future. The theoretical significance to the auditor is a good basis and precondition for a well audited, and with that issue in a good audit report, but nevertheless, enormous importance has practical skill. Due to this, there is the necessity of the existence of programs for professional education to the auditor. Continuing education of auditors should be in accordance with legal requirements and legislation. This will provide better communication between auditors and management of the business entity that is subject to revision, and the communication between auditors and the public, primarily users of these audit reports. In other words, every auditor has a good education if you can afford to meet the requirements of dynamic and turbulent environment. That means only professionally competent auditor can afford to give fast, reliable, objective, realistic audit report as a result of the audit of the financial statements for the business entity that is subject to audit.
Internal auditors by passing a uniform exam can be certified for the title - internal auditor. The world leader in certification, education and training of internal auditors is the Institute of Internal Auditors (Institute of Internal Auditors - IIA), founded in 1941 in the U.S., which despite internal auditing standards, has prepared a special education program and passing the exam for the title - certified internal auditor. Considering the important role of internal auditors for the economic efficiency of business entities, place emphasis on their professional ethics. Therefore, members of the Institute of Internal Audit were motivated to develop a special code of ethics that would specifically develop and define the principles and rules that are immanent to the internal audit profession. Code of Professional Ethics adopted the Institute of Internal Audit in New Orleans in 1968, and he is complemented in 1998.
The requirement for consistent monitoring and respecting the norms of the Code is addressed to individuals and entities that provide internal auditing services. The ethical rules and principles must not be subject to compromise, but respect their character is the imperative. Failure to follow the defined rules and principles of ethical conduct by members of the Institute and candidates for professional certification IIA, according to the IIA Statute entails rigorous sanctions for violators. Illustrative structure of the IIA Code is shown below:
Figure 7: Structure of the Code of Ethics of the IIA
Source: IIA
From this picture can note the identity for number and the names of the rules and principles of professional conduct of internal auditors. The only difference consists in the formulation of rules and principles, so the first give the global framework, while the second contain detailed instructions and help in the interpretation of the principles in practical applications, in order to guide the ethical conduct of internal auditors in accordance with the criteria profession.Professional ethics must expand more and surpass the boundaries of moral principles. The moral principles are primarily covered the standards of conduct that are designed for professionals. Professional codes of ethics, which are designed in part to encourage ideal behavior must simultaneously be realistic and enforceable. To be meaningful, standards of professional conduct should be placed above the law, but under ideal.
The professional liability of auditors in the modern business environment is constantly increasing. When we talk about the responsibility of the internal auditor or internal audit, regardless of whether it relates to smaller or larger scale examination of the operation of the company is always responsible for the quality and quantity of work. Internal audit is necessary to respect the working principles, which indicate the quality of its information. Manager of the internal audit is most responsible for the reliability of the information pertaining to the audits, and parallel to it are responsible heads of audit teams and auditors who have worked themselves to certain activities.
Integrity Objectivity Confidentiality Competency Integrity Objectivity Confidentiality Competency Provide a framework for the rules: guide members in carrying out their professional responsibilities and express the dogmas of ethical and professional conduct. Specifies the implementati on of professional services by members, describe the behavior required of the members of the auditing profession. Principles Principles
CONCLUSION
With the help of internal audit is achieved permanent internal control over operation of the business entity. Perceived errors and enable their timely removal. Internal audit in any business entity, organized differently depending on the circumstances, the activity which deals with the business entity. Its function is adjusted in accordance with changes in the socio-economic conditions of the economy.The management of enterprises are focus to the decision of introducing or not introducing internal audit in the business entity. With the internal audit is carried out timely detection and elimination of errors by obtaining information about them. This reduces the time and businesses costs. In the businesses that have an internal audit, management has a clear picture of the level of success at work, because there is constant monitoring of its functioning. The existence of internal audit allows reducing the number of fraudulent material statements.
This paper covers current issues in order to emphasize the importance of internal audit as a service management to improve the economic efficiency of enterprises in the country. Because the operation of market economies is different, the interest of management is to organize internal audit will help in guiding the activities to set goals and proposing possible corrections to these activities and goals.
Internal audit needs of management, because its actions that: assess the overall efficiency of the company operation; allows to detect and remove inefficient and unsuccessful operations; protecting property from breaking; determines the scope of the accompanying operational services to the politics of the business entity; minimize the risk of fraud, revealing weaknesses in operation and fulfilling the controls that can prevent fraud; suggests the application of internal regulations and guidelines of the company; impact on improving the accuracy and reliability of accounting and operational data and information, which are foundation for decision making.
In some countries, more attention is paid to the external audit, and the legislature is unilaterally oriented: only deals with external audit. But no doubt it must be noted that internal audit is important for enterprises in terms of explicit management necessary for successful and efficient operation of companies. The most important feature of internal audit is an undeniable fact that it is an active participant in the system of managing the overall operation. This is actually its big feature, by which it is differentiated from the functioning of the external audit. Internal Audit examines and evaluates the real potential development of business processes, it is vital for companies in a market economy.
Internal audit should take account of their professional authority and its preservation, because if the work of the audit reveal weak points, then it will be necessary authority to re-establish, as will appear doubt any information when making business decisions, which in any case is not the purpose of the existence of internal audit in the enterprise. But not at all times the internal audit to be infallible, but their mistakes internal auditors bear appropriate disciplinary and even liability.
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