INTERNAL AUDIT SYSTEM CHANGES IN LOCAL GOVERNMENTS OF LATVIA

To ensure effective performance of the internal audit function local government may enter into cooperative agreement with the relevant ministries of the person into the ministry of internal audit system. The aim of this article is to find out what internal auditing methodology is used by internal auditors in local governments of Latvia. The tasks of this research are: to make survey of Latvia local governments, to make data collection and analysis. In Latvia is still not in place an internal audit system in local government's level and because of that this research is topical. Author made survey of Latvia local governments, made data collection and data analysis. Data from 30.25% local governments were collected and analysed. Each internal auditor in Latvia local governments makes audits by internal audit methodology (46%), International Standards for the Professional Practice of Internal Auditing (23%), International Audit Standards (8%), Latvian legislation and Local government binding rules (85%). Just one Local Government internal auditor is member of the Institute of Internal auditors, just in 54% of local governments is approved internal audit methodology. From the results of the research the author has come to the following conclusions that no Internal audit system in Latvia local government level and no common approach in Latvia local governments internal auditing because of Latvian legislation rules. Authors' suggestion - common system (authors research is not finished yet, but one of them could be budget indicators - table 3) for local governments internal auditing is necessary for comparable and transparent information of local government's activities.