Internal control and internal audit in non-profit organizations

Abstract

As a result of the global crises experienced one after another in recent years, and the radical changes that have taken place in the public sector, a new understanding of public administration has emerged. As a requirement of this understanding, the state economy was replaced by a market economy, and the centralized structure was replaced by a more decentralized approach to governance. Thus, principles such as transparency, accountability, efficiency, efficiency, economy, strategic planning, performance management and oversight have gained importance in public administration. The practice of internal audit and internal control has become an indispensable management function for non-profit organizations, whose powers, duties and responsibilities increase with globalization and localization. For this reason, in non-profit organizations, internal auditors are responsible for internal audit activities, and senior managers are responsible for the functioning of the financial management and internal control system. Today, the practice of internal audit and internal control has been implemented in non-profit organizations, and systematic research on reporting and improvement has begun. This dissertation will examine how internal audit and internal control processes are implemented in non-profit organizations. Private sector entities have contributed significant added value through internal control and internal audit functions. As for government agencies and organizations, the functions of internal control and internal audit have just begun to take shape in the modern sense.