No abstract

The paper investigates whether a supportive control environment is associated with the internal audit effectiveness and what characteristics of a control environment are important in this respect. A survey was conducted via a questionnaire on 54 mostly large companies in Croatia. Appropriate methods of statistical analysis were used in order to analyse the survey results. According to the research results, in the case of a supportive control environment there is a greater chance that the internal audit will be effective and that its recommendations will be taken into account to a greater extent. In addition, the survey results showed a statistically significant correlation between perceived internal audit effectiveness and a higher level of supportive control environment.

The activities of the internal audit and audit committee in a company are of exceptional importance for the good practice of corporate governance. For the audit committee, performing numerous roles and responsibilities of are not possible without the appropriate interactions with the internal audit department. On the other hand, the quality of the internal audit operations in a company is largely determined by the cooperation with the audit committee. This research analyses the influence of the audit committee on the internal audit operations in the sense of achieving the numerous roles and tasks of modern internal auditing in the system of corporate governance. On the basis of the conducted empirical research, using a questionnaire, the following hypothesis was tested: the efficiency of the internal audit function increases through its inclusion in the activities of the audit committee. Before the analysis and discussion on the results of the conducted empirical research on the influence of the audit committee on the improvement of internal audit activity, obtained by using methods of analysis and synthesis, induction, deduction and comparative method, some relevant aspects are researched regarding the relation between the internal audit function and the audit committee in the system of corporate governance.

Internal auditors are facing today's fast-paced business conditions that challenge them to implement adequate information technology and use analytical procedures as key audit techniques. Continuous technology improvement enables the development and application of analytical procedures that were unimaginable in the time of 'paper-based auditing'. The research idea is to investigate the level and improvements of analytical procedures by internal auditors working in contemporary business conditions in Croatia. Given that the advancement of technology supports the application of complex analytics, the investigated problem includes an analysis of coherence between available technology and applied analytical procedures. The importance of using analytical procedures can be confirmed by the positive effects these procedures have in internal auditing as they increase its effectiveness and efficiency. In relation to this, the research also includes an investigation of the level, differences and complexity of analytical procedures used in internal audit in order to determine the current state of and prospects for improving the effectiveness and efficiency of internal audit activity in Croatia. Considering the purpose and possibilities of analytical procedures, the research examines the extent to which, measured by the analytical procedures application level, internal audit functions in Croatia are adapting to contemporary business conditions and changing professional processes. The research issues are analyzed by using the theoretical overview, guidance provided by professional institutions, and the importance that internal auditing has as a corporate governance mechanism. The research will provide insights into whether and to what extent the required methodology is respected