DEVELOPMENT OF INTERNAL AUDIT IN LATVIA

Internal audit is current, significant and integral part inspecting any public institution or private sector, particularly - accounting. Every year internal audit meets continuous modifications in the world. Significant role of internal audit has been evaluated of late years. Nowadays internal audit has been regarded as relevant service for all managerial levels, because recommendations made by auditor and adopted decisions by public managers may be crucial for the continuation of public or institution activity. The aim of this research is to establish the development perspective of internal audit in the state administration, in regional government and in the private sector corporations in Latvia. In order to carry out this research the nature of internal audit and internal control has been analyzed. Analyzing publications by Latvian and foreign authors about internal audit and internal control, legislation of internal audit and Informative report about activity of internal audit in ministries and institutions has been analyzed, as well as code of ethics and international standards of internal audit professional practice has been analyzed. Existence of internal audit in Latvian regional governments, in bank sector and private sector corporations has been researched. As a result of research the fact has been established, that in the state administration of Latvia the system of internal audit has been organized and is working but currently it is required to realize several activities for the quality improvement. In the regional governments the system of internal audit has been organized and partly is working in the biggest cities, but in the local authorities of the districts the structural unit of internal audit is not organized. Internal audit has been introduced and is working in all registered commercial banks of Latvia and in branch offices of foreign banks; similarly internal audit has been organized in the biggest enterprises of Latvia. The examined issues of the paper need further theoretical and empirical research.