The Effect of Public Finance Control on the Improvement of Work of Internal Auditors in Enterprises Founded by the Local Self-government Units on the Example of the Republic of Serbia
DOI:
https://doi.org/10.4335/19.2.245-261(2021)Keywords:
finance, control, public administration, benefit, SerbiaAbstract
This study shows the importance of introducing control over the work of internal auditors in public enterprises. The aim of the study is to indicate possible benefits in the operations of public enterprises following the control conducted over the work of internal audit by public finance bodies. To reach their aim, the authors conducted a research and determined the existence of differences in the efficiency of operations in public utility enterprises with internal audit in place before and after the control conducted by public finance bodies. The obtained results show there is a strong impact of the control performed by the public finance bodies set up to supervise the work of internal auditors in public enterprises on the operating results expressed as total revenues of public enterprises.
References
Alibegović, D., Hodžić, S. & Bečić, E. (2018) Limited Fiscal Autonomy of Croatian Large Cities, Lex Localis – Journal of Local Self-Government, 16(1), pp. 107–128.
Arundel, A., Bloch, C. & Ferguson, B. (2019) Advancing Innovation in the Public Sector: Aligning Innovation Measurement with Policy Goals, Research Policy, 48(3), pp. 789-798.
Auerbach, J. A. (2019) Tax Equivalences and Their Implications, Tax Policy and the Economy, 33, pp. 81-107.
Ball, R. (2016) IFRS – 10 years later, Accounting and Business Research, 46(5), pp. 1-27.
Blankley, A. I., Hurtt, D. N. & MacGregor, J. E. (2012) Abnormal Audit Fees and Restatements, Journal of Practice & Theory, 31(1), pp. 79-96.
Bekkers, V. & Tummers, L. (2018) Innovation in the Public Sector: Towards an Open and Col¬laborative Approach, International Review of Administrative Science, 84(2), pp. 209-213.
Bernt, M., Colini, L. & Foerste, D. (2017) Privatization, Financialization and State Restructuring in Eastern Germany: The Case of Am Sudpark, International Journal of Urban and Regional Research, 41(4), pp. 555-571.
Biščak, M. & Benčina J. (2019) The impact of HRM practices on the performance of municipalities the case of Slovenia, Transylvanian Review of Administrative Sciences, 58 E/2019, pp. 5-23.
Bogataj D., McDonnell, D. R. & Bogataj, M. (2016) Management, Financing and Taxation of Housing Stock in The Shrinking Cities of Aging Societies, International Journal of Production Economics, 181, pp. 2-13.
Brown, L. & Osborne, S.P. (2013) Risk and Innovation: Towards a Framework for Risk Governance in Public Services, Public Management Review, 15(2), pp. 186-208.
Chen, R. (2019) Internal Control Audit Fee and Internal Control Audit Quality—Evidence from Integrated Audits, Open Journal of Business and Management, 7, pp. 292-311.
Chen, K. & Guan, J. (2012) Measuring the Efficiency of China’s Regional Innovation Systems: Application of Network Data Envelopment Analysis (DEA), Regional Studies, 46(3), pp. 355-377.
Christensen, C. M., Raynor, M. E. & McDonald, R. (2015) What is Disruptive Innovation, Harvard Business Review, 93(12), pp. 44-53.
Cooke, P. & Memedović, O. (2003) Strategies for Regional Innovation Systems: Learning Transfer and Application (Vienna: Strategic Research and Economics Branch, United Nations Industrial Development Organization (UNIDO)), pp. 1-38.
Davison, J. (2015) Visualising accounting: an interdisciplinary review and synthesis, Accounting and Business Research, 45(2), pp. 121-165.
Durocher, S. & Gendron, Y. (2014) Epistemic commitment and cognitive disunity toward fair-value accounting, Accounting and Business Research, 44(6), pp. 630-655.
Ege, M. S. 82015) Does internal audit function quality deter management misconduct?, The Accounting Review, 90(2), pp. 495–527.
Finžgar, M. & Brezovnik B. (2019) Direct international comparison of EU member states fiscal decentralization systems with the conceptual index of fiscal decentralization (CIFD) in the context of European charter of local self-government (ECLSG), Transylvanian Review of Administrative Sciences, 56E/2019, pp. 41-59.
Fusco, F. & Ricci, P. (2019) What is the stock of the situation? A bibliometric analysis on social and environmental accounting research in public sector, International Journal of Public Sector Management, 32(1), pp. 21-41.
Hafsa, A. & Cohen, A. D. (2019) Stakeholder attributes and attitudes during privatization: a New Zealand case study, International Journal of Public Sector Management, 32(2), pp. 157-174.
Han, Y. (2017) Has the Non-Clean Internal Control Audit Opinion Received Sufficient Attention?—Evidence from the Perspective of Creditors, Journal of Central University of Finance and Economics, 8, pp. 57-64.
Kukovič, S., Haček, M. & Bukovnik, A. (2016) The Issue of Local Autonomy in the Slovenian Local Government System, Lex Localis – Journal of Local Self-Government, 14(3), pp. 303–320.
Liu, Y. (2010) The Study of the Application Status of Fair Value Accounting in China, International Journal of Business and Management, 5(9), pp. 155-158.
Majstorović, A, Popović, S. & Volf, D. (2015) Teorija i politika bilansa, drugo izmenjeno i dopunjeno izdanje, (Novi Sad: Feljton).
Malone, L., Tarca, A. & Wee, M. (2016) IFRS non-GAAP earnings disclosures and fair value measurement, Accounting & Finance, 56(1), pp. 59-97.
Mijić, R. & Popović, S. (2016) Finansijsko Računovodstvo (Banja Luka: City print).
Misuraca, G. & Viscusi, G. (2015) Shaping Public Sector Innovation Theory: An Interpretative Framework for ICT-enabled Governance Innovation, Electronic Commerce Research, 15(3), pp. 303-322.
Osborne, S. P., Radnor, Z., Kinder, T. & Vidal Martínez, I. (2015) The service framework: A public-service-dominant approach to sustainable public services, British Journal of Management, 26(3), pp. 424-438.
Panikarova, S. (2019) Analysis of the effectiveness of the regional innovation system. A case study on polyethnic regions of the Russian Federation, Transylvanian Review of Administrative Sciences, Special Issue 2019, pp. 41-58.
Pernek, F. (2001) Finančno pravo in javne finance-splošni del (Maribor: Pravna fakulteta).
Perry, T. & Shivdasani, A. (2005) Do Boards Affect Performance? Evidence from Corporate Restructuring, Journal of Business, 8, pp. 231-246.
Popović S. (2014) Socio-ekonomski faktori ograničenja razvoja agrara (Novi Sad: Feljton).
Popović, S., Majstorović, A. & Grublješić, Ž. (2015) Valuation of facilities in use and application of international accounting standards, Аctual problems of economics, 3, pp. 379-387.
Popović, S., Novaković, S., Đuranović, D., Mijić, R., Grublješić, Ž, Aničić, J. & Majstorović, A. (2017) Application of international accounting standard-16 in a public company with predominantly agricultural activities, Economic Research - Ekonomska Istraživanja, 30(1), pp. 1850–1864.
Propheter, G. (2019) Do professional sport franchise owners overpromise and underdeliver the public? Lessons from Brooklyn’s Barclays Center, International Journal of Public Sector Management, 32(1), pp. 80-101.
Radović, M., Vitomir, J. & Popović, S. (2019). The Importance of Implementation of Internal Audit in Enterprises Founded by the Republic of Serbia, Lex Localis - Journal of Local Self-Government, 17(4), pp. 1001–1011.
Renyu, H. & Kaishi, N. (2015) The application of XBRL in enterprises ’internal control report, Theoretical Economics Letters, 5, pp. 179-184.
Stewart-Weeks, M. & Kastelle, T. (2015) Innovation in the Public Sector, Australian Journal of Public Administration, 74(1), pp. 63-72.
Svoboda, P. (2007) Valuation of tangible fixed assets pursuant to the Czech accounting law and international accounting standards, Agricultural Economics, 53, pp. 446–474.
Tackie, G., Mrafo-Yiadom, E. & Achina, S. (2016) Determinants of Internal Audit Effectiveness in Decentralized Local Government Administrative Systems, International Journal of Business and Management, 11(11), pp. 184-195.
Tang, X.J. & Zhang, J.S. (2017) Voluntary Disclosure of Internal Control Audit Fees Can Improve the Independence of Internal Control Audit?, Auditing Research, 3, pp. 90-96.
Tatar, M.I. (2016) Democratization and Political Alienation: The Legacies of Post-Communist Transition in Romania, Journal of Identity and Migration Studies, 10(2), pp. 1-24.
Tintěra, J. (2019) Innovative housing policy tools for local governments in shrinking communities with a large share of privately owned apartments: a case study of Valga, Estonia, Transylvanian Review of Administrative Sciences, Special Issue 2019, pp. 124-139.
Tonelli, D.F., Moreira, S.T.B., Mesquita, I., Silva, S.R. & Silva e Vasques, M.O. (2016) Uma pro¬posta de modelo analítico para a inovação na gestão pública, Revista do Serviço Público, 67, pp. 59-84.
Topcu, M. & SerapÇoban, S. (2017) Financial development and firm growth in Turkish manufacturing industry: evidence from heterogeneous panel based non-causality test, Economic Research – Ekonomska Istraživanja, 30(1), pp. 1758-1769.
Vitomir, J., Tomaš-Miskin, S., Ivić, M., Popović, S. (2020). Implementation of the Tender by the Municipal Service Administration from the Aspect of Management in the Municipalities of the Republic of Serbia, Lex Localis – Journal of Local Self-Government, 8(3), 469 – 486.
Vranješ, M. (2011) Finansijsko pravo, (Beograd: Zavod za udžbenike).
Williams C. (2010) Principi menadžmenta (Beograd: Data Status).
Williams, P. & Rodgers, J. (1995) The Accounting Review and the Production of Accounting Knowledge, Critical Perspectives on Accounting, 6(3), pp. 263-287.
Wirth, P., Elis, V., Müller, B. & Yamamoto, K. (2016) Peripheralisation of Small Towns in Germany and Japan – Dealing with Economic Decline and Population Loss, Journal of Rural Studies, 47, pp. 62-75.
