Latvia - Audit

Audit in Latvia

Latvia has created a decentralised internal audit system, i.e. own internal audit system is established within each ministry, directly subordinated to the head of the institution and directly reporting him on the audit results.

To ensure appropriate work of the internal audit units, the Government of Latvia approved the Regulations Nr. 342 "On the Internal Audit" on 5 October, 1999, that stipulate the obligations and tasks of internal audit units and heads of institutions in the field of internal auditing and internal control system.

To facilitate the independence of the internal audit, the Internal Auditing Council was established in accordance with the Cabinet of Ministers' regulations Nr. 346 "Statutes of the Internal Audit Council" approved on 5 October, 1999. The members of the Council were appointed on 9 August 2000 by the Cabinet of Ministers (Decree Nr. 401). The Council consists of five members, including representatives from the state institutions, public organisations, scientific and vocational educational institutions as well as business associations possessing knowledge and experience in the field of internal audit. The Internal Audit Council is a co-ordinating institution. Its aim is to co-ordinate the implementation of the internal audit system and the unified state policy in order to improve and make more efficient and rational the operation of the public administration institutions.

In accordance with the recommendations of DG-AUDIT of the European Commission "On the appropriate financial control", a single institution the Ministry of Finance was appointed as bearing the responsibility for the overall co-ordination of internal audit system and development of methodology. The Ministry of Finance has a right to perform peer reviews of the conformity of the activities of the internal audit units to the internal audit standards of the public administration. The appropriate methodology has been prepared for peer reviews....