Internal public audit – amendments and additions

In the Official Gazette with the number 845 of 29 August 2022 was published the Government Ordinance (OG) no.29 of 26 August 2022 to amend and supplement the Law no.672/2002 on internal public audit.

Central public institutions that incur expenditures of more than RON 2,000,000,000 during a budget year must set up an internal audit committee to act to increase the efficiency of internal public audit activity.

Public institutions that incur expenditure of less than RON 2,000,000,000 during a budget year may set up internal audit committees in order to increase the efficiency of the internal audit activity.

The public internal audit department is established separately under the direct supervision of the head of the entity or the collective/collective management authority  , as the case may be.

The internal public audit department shall be sized, in terms of the number of internal auditors, on the basis of the volume of activity, size and complexity of the entity and of the entities subordinated to, coordinated by or under the authority of the public entity, taking into account the powers and competences provided for in its founding, organisational and operational acts and taking into account the risks associated with the activities carried out by the public entity.

At least 30 working days before the decision on the modification of the internal public audit department, the reduction of the number of internal auditors’ posts or the dissolution of the department is issued, the head of the entity shall inform the UCAAPI and the Court of Accounts of Romania.

The internal public audit is performed on all activities carried out in a public entity, at least once every 4 years, including the activities of entities subordinated, coordinated or under its authority, as appropriate, and the prioritization of internal audit missions is based on risk analysis and requests of the Romanian Court of Accounts.

As an exception to the provisions of paragraph (1), when drawing up the multiannual plan, the head of the entity or the collective/collective management authority   may approve the extension of the 4-year period by a maximum of one year, upon a reasoned proposal of the head of the internal public audit department.

The draft multi-annual plan, respectively the draft annual internal public audit plan is prepared by the internal public audit department, based on the risk assessment associated with the various structures, activities, programmes/projects or operations, as well as by taking into account the suggestions of the head of the public entity, in consultation with the hierarchically superior public entities, taking into account the requests and recommendations of the Romanian Court of Accounts and the European Commission authorities.

With the approval of the head of the public entity, the internal auditors of the public internal audit department shall carry out ad hoc audit assignments, not included in the annual audit plan, under the conditions provided for in Article 17 and in accordance with their own procedure drawn up on the basis of the general rules on the exercise of the internal public audit activity, which they develop through the methodological rules specific to the public entity, approved by the UCAAPI or the hierarchical superior authority  , as the case may be.

In the elaboration of the multi-annual internal public audit plan, as well as during its implementation, the missions requested by the Romanian Court of Accounts have priority.

The objectives of the public internal audit engagement are clearly defined for each engagement, depending on the outcome of the risk assessment and internal control and address the risk management, control and governance processes associated with the auditable area.

Accepted issues, as well as those remaining in disagreement following the reconciliation meeting, are described and justified in the public internal audit report in a separate section.