EMERGENCE AND DEVELOPMENT OF THE LEGAL FRAMEWORK FOR INTERNAL AUDIT IN THE PUBLIC SECTOR
ABSTRACT In the process of enlargement, the European Union has adopted the principles of sound financial management of public funds, whether from domestic or international funding. It is recommended that these principles be enshrined in the legislation of the candidate countries.
In this sense, the national legislation for internal audit in the public sector arise and develops as a function of the emergence and development of financial management, control and internal audit in the European Union. For the Bulgarian legislation for internal audit in the public sector the beginning was set in 2001 with the entry into force of the Act on State Internal Financial Control.
During the period 2004-2005 there are changes in the field of financial management, control and internal audit in the European Union. The purpose of the change is to achieve a separation of the three functions: decision making, control and accounting.
The reflection of the new reality in adequate legal concepts necessarily requires a reassessment of the existing ones, improvement of their content and sometimes a completely new definition.
The centralized model of state internal financial control, imposed with the adoption in 2000 of the Act of the State Internal Financial Control, with a leading role of the Agency for State Internal Financial Control should be revised in the direction of decentralization of the internal audit.
Keywords: internal audit, public sector, legal framework