Ethical Conduct and Independence in Audit and Control of Public Institutions in Romania: A Case Study
Journal Title: Oblik i finansi - Year 2024, Vol 1, Issue 3
Abstract
Internal audits play a key role in ensuring the efficiency of public institutions in Romania. However, the effectiveness of internal auditing is often compromised by challenges to the integrity and independence of the auditor. Independence in the activities of civil servants, particularly internal auditors, is crucial for unbiased assessments, free from undue influence by other parties. This article examines the ethics and independence of internal audit and control in public institutions in Romania. The purpose of the study is to assess compliance with ethical principles and independence by internal auditors in public institutions in Romania and to identify obstacles affecting the integrity of audit and control functions. The research methodology includes the distribution of questionnaires to public officials working in public institutions in Romania, complemented by an analysis of the ethical frameworks guiding these professionals. This approach aims to identify both the current state of ethical practice and the barriers to maintaining independence in audit processes. Despite significant progress achieved through the EU directive and concerted efforts to increase transparency and objectivity, challenges remain, threatening the integrity of auditing. The main findings of the investigation indicate that the main obstacles are political influence, resistance to change and insufficient resources to uphold the standards of ethics and independence of internal audit. Ethical leadership and supporting organizational culture are critical to promoting transparency, accountability and ethical behaviour in public institutions. In addition, it was found that the internal audit function is prone to modernization in the conditions of the intellectual economy. Therefore, part of it is likely to be performed by programs based on artificial intelligence. Based on the obtained results, the article provides recommendations for ensuring the ethical behaviour and independence of internal auditors in public institutions in Romania.
Authors and Affiliations
Lucia-Maria Udrescu & Mihai Ciobotea
Keywords
Related Articles
- EP ID EP750249
- DOI 10.33146/2307-9878-2024-3(105)-132-141
- Views 74
- Downloads 0
Does Dividend Policy Mediate the Relationship Between Financial Performance and Company Value?
The impact of financial performance and dividend policy on company value is the subject of numerous studies in corporate finance, although the findings are still conflicting. Therefore, this study aims to analyze factors...
Measurement and Analysis of Agricultural Products Trade Level between China and Ukraine
The analysis of intra-industry trade and inter-industry trade in international trade in different regions can fully explain the status of export trade and the advantages and disadvantages of products in different regions...
The Impact of Deferred Tax and Tax-to-Book Ratio on Financial Performance of the Sharia Commercial Banks in Indonesia
Measuring financial performance by analyzing factors affecting profit is an important component of financial management. The role of profit in Sharia banking is not only limited to determining good or bad financial perfo...
Визначення синергетичного впливу кризових явищ на кадровий розвиток вітчизняних підприємств та інноваційні показники його діагностики
Якість персоналу – одна із ключових конкурентних переваг функціонування сучасних підприємств. Сьогодні В Україні спостерігається нестача персоналу відповідної якості та кваліфікації, при цьому в усіх галузях економіки зр...
Methodological Basis for Studying the Financial Markets Transformation
Today, the development of financial markets is accompanied by various transformational processes that require the formation of an adequate theoretical and methodological basis for their research. That is why the article...