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COMMERCIAL LAW
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are systematically subject to an internal audit within the framework of the
risk based on audit plans and programs.
Pursuant to the Regulation, the auditing of public authorities consists
of the following: an appropriateness audit, a performance audit, a financial
audit, an information technologies audit and a systems audit.
Article 9 of the Regulation is also amended by the Amendment
Regulation. According to this amendment, not only the internal auditors
but also internal audit unit president shall comply with the audit standards
and ethical principles.
Responsibility of the Manager
The responsibility of the manager is regulated in detail under the
Regulation. The manager is, for example, obliged to take necessary
precautions so that auditors can execute their duties independently. The
Amendment Regulation amended paragraphs d, f and g of Article 12.
Therefore, the manager: (d) takes precautions to ensure that resources
are used efficiently and economically and to ensure that the problems
are cured subsequently according to the information and suggestions
provided by the internal audit activity; (f) sends the internal audit reports
and operations effectuated pursuant to these reports to the Internal Audit
Coordination Board; (g) surveys the quality of the internal audit and
ensures that corrective precautions are taken with regard to the results of
the external audit.
Responsibilities, Duties and Obligations of Internal Auditors
The duties of internal auditors are set forth under Articles 13 et seq.
The duties of internal auditors consist of evaluating the management
and control mechanisms of public authorities, making audits and
suggesting how to use the resources more efficiently, auditing the legal
appropriateness of expenses. The Amendment Regulation also regulates
the duties and authorities of the internal audit unit president. According
to the amendments, the internal audit unit president, for instance, must
manage the internal audit unit pursuant to the audit reports and standards,
control the internal audit reports, follow the results of the audits and take
corrective precautions pertaining to the external audit results.