THE INTERNAL AUDIT CONTRIBUTION TO THE GOVERNANCE OF THE ENTITY

The transition from planned economy to market economy resulted in significant changes both on microeconomic and macroeconomic level. This was accompanied by the privatization of state enterprises and the globalization, the emergence of multinational firms. All this led to the emergence of the aggregate corporate sector and to corporate governance. The concept of corporate governance is supported by internal audit, which is mainly aimed at assisting the organization's internal control system and provides a clear consultation management based on the analysis made. The internal audit function is in an excellent position in terms of contribution to mitigation; this being achieved through risk assessment, risk analysis, recommendations, effective approaches to risk management and the multitude of processes related to corporate governance.