The establishment of internal audit system in municipalities within the context of law no:5018 Public Financial Administration and the Control Law

Nowadays, the world has been experiencing fast developments in many aspects. Technological, economic and social developments have been affecting Turkey importantly. Globalization of trade and acceleration of economical developments increase the importance of auditing in the world. This globalization of auditing leads to international standards. As a piece of this new world, Turkey accepts and applies these standards.A new law coded 5018 and named `public financial management and controlling? has been accepted in Turkey to meet international standards and generally accepted terms. According to this new law, The Audit Court (Sayıştay) will execute the external auditing in public entities; on the other hand internal auditing units organized by the entity itself, will execute the internal auditing.This situation creates a big significance for the applications in municipalities. This new law has been describing the mayor as top manager, and planning to construct internal auditing units under the mayor in municipalities. In addition, the law gave the mission of appointment of internal auditors and preparation of working conditions to the mayor.As you can see in the application part of this study, the mayor has been executing the appointment of internal auditors in Izmir Metropolis Municipality. The construction of internal auditing unit in Izmir is at the phase of building. At the meeting where the mayor and internal auditors came together, it is accepted that internal auditing prevents the risks and composes a guarantee system for municipalities. For sure, composing of internal auditing units will increase the efficiency and productivity of municipalities.