About us
Auditing
Audits are performed by certified state auditors in accordance with procedures, methods and methodology indicated in the INTOSAI auditing standards, i.e. the auditing standards of the International Organization of Supreme Audit Institutions, and the Code of Professional Ethics for State Auditors.
The audit cycle includes drafting an annual audit plan, audit preparation and performance, drafting a report on audit performed, drafting an annual report on the work and audits performed in the State Audit Office, and submitting the report to the Croatian Parliament.
The State Audit Office drafts an annual work programme, with the time line adjusted to the business and fiscal year of audited entities.
Criteria applied in selecting entities are legal regulations, findings and opinions of previous audits, reports filed and information on the entity which was obtained from other institutions or the media.
The final decision on performing an audit is made by the Auditor General. Audits are performed in teams of two or more members, depending on the size of the audited entity.
To be certain of their judgements and to reach the correct conclusions, state auditors collect relevant and reliable audit evidence in the written form.
A report is drafted for every audit performed, its most important parts being audit finding and audit opinion. Audit finding contains a summarised description of facts found during audit, with orders, opinions and recommendations of the State Audit Office. Audit opinion is an opinion on audited entity’s financial statements and business performance, expressed in accordance with auditing standards.
Depending on the number and materiality of irregularities identified, a qualified, unqualified, adverse opinion or disclaimer of opinion is expressed.
The report is delivered to the legal representative of the audited entity for review. After review, the statement on the draft audit opinion is included into the report which is then signed by all team members and delivered to the legal representative of the audited entity. The legal representative can file a complaint on the report within eight days of the delivery. Auditor General will decide on the complaint.
The following audit will start by establishing what has been done on removing irregularities found in previous audits.
Once a year, in accordance with the State Audit Act, the Office submits a report on work of the State Audit Office and reports on audits performed, to the Croatian Parliament. These reports are published on www.revizija.hr, the official web site of the State Audit Office, making them available to the public at large. In this way, the Office informs the public of its work in the previous year and the ways in which tax payers' money is spent.
Year on year, the State Audit Office performs an increasing number of audits, which include an increasing amount of funds. In 1995, 536 audits involving 41 billion HRK were performed whereas in 2004, 1,008 audits were performed involving 104 billion HRK.
Increase in the number of audits performed greatly resulted from increase in the number of state auditors and their expertise, use of IT, specialisation and improvement of procedures and work methodology.
