EXTERNAL AUDIT IN THE PUBLIC SECTOR – THE EXAMPLE OF CROATIA

Abstract

The article deals with the external audit in Republic of Croatia and the State Audit Office (SAO) which was established in 1994, as an independent body, accountable to parliament. The SAO is a member of INTOSAI and has a reputation as an independent and efficient audit institution, because its position is now strengthened by the 2010 constitutional reforms and the Law on the SAO provides for institutional, functional and financial independence of the SAO. Regarding external audit, Croatia is expected to apply the norms defend by INTOSAI and training of external auditors needs to continue in order to carry out external audits in accordance with International Standards on Auditing and European best practice. Further efforts are required to strengthen the organisation and to enhance the impact of external audit, by improving the follow-up of the SAO’s recommendations and quality control of the SAO’s performance.