Abstract:

Internal audit has been functioning in self-government units, similarly as in the entire sector of public finances in Poland, since 2002. Its current form has changed considerably during that time. Initially, internal audit particularly focused on the area of financial economy of the unit. With time, it evolved towards a complex evaluation of the activities of the unit, considering all aspects of its functioning. The perception of the audit also changed. Internal audit is currently transforming towards an efficiency audit. Next to investigating the unit in terms of accordance of the performed activities with legal provisions (criterion of legality), internal audit focuses on the evaluation of all areas of its activity, with consideration of economic criteria (rule 3E – economy, efficiency, and effectiveness)[1].