THE OPPORTUNITIES TO IMPROVE INTERNAL AUDIT IN LATVIA PUBLIC SECTOR

Local government auditors lack the knowledge and skills in the sphere of internal audit and internal control system. However, in the aggregate, there is a lack of IT auditing competencies; it is recommended to use the COSO model as a solution, which is already integrated into the internal control systems of both Latvia and other EU Member-States. The research paper includes the description of the possibilities for improving the internal audit of Latvia's direct state administration and local governments. Using the analysis of theoretical and empirical research results, options for the implementation of internal audit in local governments are developed. Based on the analysis of the results of the research, the author developed recommendations to the ministries of the Republic of Latvia to improve the internal audit function in local governments. Internal auditors of local governments work according to different methods, in some municipalities, there is no methodology, in 50% of cases internal audit unit works without methodology. Local governments have a different approach to developing IA methodology and structure of regulations, different approach to plan preparation, mainly using previous years' audit plans and/or consulting with the heads of departments and management of the institution.