Usefulness and Factors of Benefit of Internal Audits (Empirical Assessments)

The results presented here from an empirical study of the internal audit in the public sector of Bulgaria show that, 10 years after its legislative introduction it has received significant recognition by organisation leaders. However, there are some reserves whose dedicated use would enhance the benefit of internal audit. Still about 15% of organisation leaders have serious doubts in the efficiency of internal audits. There is a relatively low level of approval of the internal audit contribution to resolving the tasks of internal control systems in ensuring the reliability of financial and management information and achieving economies, efficacy and efficiency of operations.Similarly low is the level of appreciation of internal audit contribution to the completeness of the internal control system elements of control environment as well as of information and communication. Organisation leaders are seriously reserved about the completeness of information acquired through internal audits which indicates problems with the strategic and annual planning of operations. The timeliness of information from reports on particular audit commitments is also accounted as a problem.Approximately every one out of ten managers of organisations thinks that the findings and recommendations of the internal audit do not bear sufficient benefit to the organisation and its capability of providing competent advice is limited or absent. Some 15% of managers share the opinion that the internal audit is not unbiased or impartial and that its priorities do not correspond to the organisation’s goals.This material presents the results from a study on a variety of relations and correlations of assessments of various aspects of the activities involved in internal audit, which can serve as a basis for development and implementation of an effective strategy for its elaboration and improvement.