Ethical Conduct and Independence in Audit and Control of Public Institutions in Romania: A Case Study

Internal audits play a key role in ensuring the efficiency of public institutions in Romania. However, the effectiveness of internal auditing is often compromised by challenges to the integrity and independence of the auditor. Independence in the activities of civil servants, particularly internal auditors, is crucial for unbiased assessments, free from undue influence by other parties. This article examines the ethics and independence of internal audit and control in public institutions in Romania. The purpose of the study is to assess compliance with ethical principles and independence by internal auditors in public institutions in Romania and to identify obstacles affecting the integrity of audit and control functions. The research methodology includes the distribution of questionnaires to public officials working in public institutions in Romania, complemented by an analysis of the ethical frameworks guiding these professionals. This approach aims to identify both the current state of ethical practice and the barriers to maintaining independence in audit processes. Despite significant progress achieved through the EU directive and concerted efforts to increase transparency and objectivity, challenges remain, threatening the integrity of auditing. The main findings of the investigation indicate that the main obstacles are political influence, resistance to change and insufficient resources to uphold the standards of ethics and independence of internal audit. Ethical leadership and supporting organizational culture are critical to promoting transparency, accountability and ethical behaviour in public institutions. In addition, it was found that the internal audit function is prone to modernization in the conditions of the intellectual economy. Therefore, part of it is likely to be performed by programs based on artificial intelligence. Based on the obtained results, the article provides recommendations for ensuring the ethical behaviour and independence of internal auditors in public institutions in Romania.