The global and financial crises have created the need for changes in the legal and regulatory requirements
with the aim to promote and establish better corporate governance. Internal audit is
an integral part of good corporate governance and its task is to ensure credibility of the financial
reporting process. Internal audit should be seen as a management tool that will enable managers to
provide a realistic picture of organizations and their operations, performances, potential hazards, as
well as the opportunities for improvement. Internal audit development has undergone significant
challenges in numerous countries due to different strengths of accounting standards being used, the
availability of institutional capacities and the existence of social consensus to carry out audit in the
public sector. There is a need in contemporary financial management to strengthen the overall audit
function. This particularly applies to developing countries, including Serbia.
In this paper, the authors examine the challenges of internal audit in both private and public sector
and reach the conclusion that the modern business principles require that the internal audit function
is based on the estimation of future trends and risk predictions.
E. Marinković, M. M. Šestović, “THE CHALLENGES OF INTERNAL AUDIT IN CONTEMPORARY FINANCIAL MANAGEMENT,” in FINIZ 2015 - Contemporary Financial Management, Belgrade, Singidunum University, Serbia, 2015, pp. 73-77. doi: 10.15308/finiz-2015-73-77
Marinković, E., M. Šestović, M. (2015). THE CHALLENGES OF INTERNAL AUDIT IN CONTEMPORARY FINANCIAL MANAGEMENT. Paper presented at FINIZ 2015 - Contemporary Financial Management. doi:10.15308/finiz-2015-73-77