Informative Notice
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Internal auditing of budget users
Internal auditing provides independent verification of the financial management system and controls, and advisory services for the management to improve their efficiency.
Internal auditing is carried out by internal auditors. Internal auditors carry out auditing in compliance with the Code of Ethics for internal auditors and with internal auditing standards.
The implementation of internal auditing is mandatory for budget users.
The implementation of the activity of internal auditing may be entrusted by budget users to outsourcers authorised to implement internal auditing.
Outsourcers who wish to implement internal auditing must meet the prescribed conditions and be entered in the register of internal auditing providers.
A provider is deemed to have sufficient knowledge, skills and abilities if at least the head of the auditing group has acquired one of the professional titles stated below:
- certified internal auditor or
- certified internal government auditor pursuant to the Public Finance Act or
- certified internal government auditor pursuant to the Public Finance Act or
- certified auditor pursuant to the Court of Auditors Act or
- certified government auditor pursuant to the Court of Auditors Act.
Applies for SKD:
- Accounting, bookkeeping and auditing activities, tax consultancy M69.200
Conditions
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Applicants who wish to pursue this activity must register the business activity, and have the appropriate legal status.
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Prior to commencing the activity of internal auditing of users of the national and municipal budgets, an auditing company or an independent auditor (sole trader) must be entered in the register of internal auditing providers.
Applications may also be submitted to the email address of the Budget Supervision Office of the Republic of Slovenia (UNP).
On the basis of the application filed, the UNP verifies the conditions and enters the provider in the register.
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Outsourcers implementing internal auditing must have special knowledge, competences and experience in internal auditing.
The position of the Slovenian Audit Institute is that clients should require outsourcers implementing internal auditing to have at least three years' experience in internal auditing.
Evidence
Evidence of suitable experience in internal auditing
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When implementing internal auditing with budget users, outsourcers must observe guidelines for financial management and internal control, and for internal government auditing.
Implementing internal auditing is in contravention of legal provisions if the auditing company which employs the outsourcers implements an audit of annual financial statements of the client.
Outsourcers must provide a statement to the client that the implementation of internal auditing for the client will not be in contravention of legal provisions.
Evidence
Statement of an outsourcer that the implementation of internal auditing for the client will not be in contravention of legal provisions.
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There is a conflict of interest if:
- the outsourcer provided advisory services for a client in the field the outsourcer was expected to audit;
- the outsourcer is in ownership relation with the client,
- or has a family relationship with the management or the management of the audited area;
- the outsourcer is a member of the supervisory body of a client;
- and in other cases defined in applicable regulations.
Outsourcers must provide a statement to the client that the implementation of internal auditing for the client will not put them in a situation of a conflict of interest.
When implementing internal auditing of budget users, outsourcers must observe guidelines for financial management and internal control, and for internal government auditing.
Evidence
Statement of an outsourcer that there is no conflict of interest