The role of internal audit in ensuring the security of public finances in Poland

Abstract

Ensuring the stability of public finances is important for the solvency of the state, but above all, ensuring that public authorities provide an appropriate level of public services. The stability of public finances depends to a large extent on fiscal policy, and thus constitutes an important impulse for the development of the economy of individual regions. Therefore, an important task is to monitor forecasts of the public deficit and debt, as well as the risks related to the stability of public finances. These tasks belong to the internal audit and include the assessment of activities by public authorities in terms of income, expenses and financial results. In the process of stability of public finances, the role of the internal auditor in the activities of a public finance sector entity is visible. The obligation to conduct an internal audit is specified in the Public Finance Act, and its main task is to influence the processes of improving the functioning of the public finance sector unit. Striving to increase the quality and efficiency of performing public tasks by improving management is the main task of internal audit. The purpose of the audit is to ensure rational and economical management of public finances in connection with the implementation of tasks by all administrators and at all levels of management of these funds. The audit should therefore ensure an independent and objective assessment of the financial management of public funds, according to criteria that guarantee the purposefulness, credibility and economy of their spending. Internal audit ensures a common, uniform system of control of public finances, the same for all entities managing public funds at all levels of management.