The implications of objectivity and independence in ensuring the efficiency of internal audit in public institutions in the Republic of Moldova

Abstract

This article presents the results of the examination of the impact of objectivity and independence on the efficiency of the internal audit in the public sector of the Republic of Moldova. The study begins with the theoretical examination of the key features of internal audit effectiveness, objectivity and independence. The validation of research results is carried out based on econometric methods by means of Spearman and Pearson correlation coefficients. The practical information was gathered from the consolidated annual report on public internal financial control for the year 2022 and 56 individual activity reports of the internal audit subdivisions of national public entities. Finally, it was demonstrated that the optimization of the audit processes is also considered effective when taking into account the reality, complexity and dynamics of economic operations, and the effectiveness of the internal audit is directly influenced by the objectivity and independence of the internal auditor. This article aims to provide a comprehensive perspective on internal audit in the public sector and how it contributes to enhancing added value and ensuring transparency and accountability.