The structure and financial audit of internal control system in public institutions: Related an example application

Internal audit is the giving reaonable assurance and consulting activity which achieve the objectives of the organization. In the same time as a part of the internal control system, internal audit is assessing the adequacy and effectiveness of the internal control system. Throughout history, with in parallel of the development and change of control, internal audit had been implemented first in the private sector and then had been skipped the public institutions. The Inspection system, which is is a very old origins of the Turkish Public Management; in practice, often made of various investigations, in essence, is a system that continues to exist as investigative units. As a result of negotiations with the European Union, after the introduction of internal audit in public institutions with 5018 Public Fiscal Management and Control Code (PFMCC); besides the current inspection system, a control system that is completely unique in the public institutions of international standards are met. Besides internal audit, enacted by the 5018 PFMCC such as a number of new concepts, the internal control system, strategic management and annual report are also available. Certainly these public institutions will take time to assimilate. In fact, better internal control system can be installed in public institutions, the quality of the internal control system controls will be better realized. In addition to the existing problems of the internal audit system in public institutions, but not at the desired level, in the last 5-6 years has made a significant distance. The purpose of the study is to express the problems and propose solutions in this process with put forth the structure and the development of the internal audit system of the Turkish Public Management. As an example of application, financial audits of accounting and reporting procedures, which is a very important function of public institutions, are considered. Keywords: Audit, Internal Audit, Inspection, Internal Control, Internal Auditor, Financial Audit, International Internal Audit Standards, Public Internal Audit Standards