Some Considerations regarding the Evolution of Internal Audit in Romania

Abstract

Organizations, regardless of their type, face a multitude of risks associated with their activities, both internal and external, in achieving their objectives.

Therefore, for their management, an important concern is the detection of risks, their classification and taking measures to correct or eliminate them, depending on the order of probability of occurrence and the impact they can have.In this context, the internal audit intervenes, whose role is to support an entity to meet its objectives. The internal audit is a function of the organization, whose role and significance depend mainly on the nature, size and structure of the audited entity, but also on the understanding that the management shows towards it, in its capacity as a source of information and decision-making support.

In Romania, the introduction of internal audit within the management systems is of relatively recent date (the field of audit not being part of the organizational culture of the patrimonial entities in our country until then), this being driven by Romania's efforts to (pre)accession to the EU. In this context, important steps have been taken since 1999 towards the regulation of internal audit activity, on two different levels of legislation, ensuring through specific legal regulations the normative and procedural framework of organization, operation and management for entities belonging to the public sector, and separately, for organizations in the private sector.

As a result, the first category of rules regulates internal public audit, and the others concern the exercise of internal audit at the level of private entities.