THE VALUE-ADDED INTERNAL AUDIT IN PUBLIC ADMINISTRATION IN LATVIA

The quality of internal audit and the added value of internal audit are unanswered questions in many public institutions in Latvia and around the world. This research was aimed at determining the evaluation approach of internal audit in the public sector of Latvia and developing a list of added value or benefits of the internal audit in a local government. The monographic method and the survey method, an expert survey, were used in the paper. The author has developed a valuation approach of internal audit in local governments. The author offers applying the approach developed when carrying out external evaluations to the commission of the responsible ministry in the sector, the representatives of the audit committee, the management of the local government, and to the auditees by inviting independent experts in the field of internal audit when evaluating the efficiency of the compliance of local internal audit unit with the legal enactments regulating internal audit, standards of professional practice, and best practices in auditing. Research results showed that the greatest added value of internal audit is the benefits associated with improving management, budget planning and execution control, ensuring the uniform work of the office and circulation of documents, improved coordination of organisational and technical aspects of the council and the local government, as well as improving procurement processes and providing more efficient procurement plans.