Internal Audit Law

Original Language Title: Iekšējā audita likums

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Read the untranslated law here: https://www.vestnesis.lv/op/2012/203.1


The Saeima has adopted and the President promulgated the following laws: the internal audit law chapter I General provisions article 1. The terms used in the law, the law is applied in the following terms: 1) resource cost effectiveness: the degree to which the Ministry or body reaches desired results compared to the input costs; 2) economic efficiency — expected or achieved results in terms of quality and quantity, to the invested resources and activities; 3) functional efficiency, expected or achieved results and the conformity of the alternative chosen for specific purposes; 4) authority — the Prime Minister directly subordinate institution, the institution shall give to the Minister, other than the Ministry; 5) the internal control system, risk management, control and management of the package of measures which the task is to ensure the ministries and authorities, objectives, asset protection, the reliability of the accounts, operations, compliance with the law and for which the establishment is responsible for the State Secretary of the Ministry or authorities; internal audit: 6) the internal auditor's independent and impartial operation, the result of which is given to internal control evaluation system to perfect the internal control system and the authority of the Ministry; 7) advice — advice service, which aims to improve the internal control system, and the nature and extent of which is determined by the State Secretary of the Ministry, the head of the Authority (authority) or a Ministry or Department of the authority. 2. article. The purpose of the Act the Act's objective is to provide an independent and objective assessment of internal control system in order to improve this system in public administration. 3. article. The operation of the law (1) of the Act applies to ministries and institutions. It establishes the legal framework for the internal audit system, operation and coordination of the Ministry and authority, as well as internal auditors the responsibilities, rights and conditions of independence and impartiality. (2) derived public persons system, internal audit internal audit organisation and internal audit procedures shall be governed by the decision-making body. To ensure effective internal audit function, derived public persons in authority, if necessary, you can enter into a cooperation agreement with the Ministry on this person's inclusion in the Ministry's internal audit system. (3) article 13 of this law, the provisions on the rights of the internal auditor also apply to those derived public persons and private individuals who have received the relevant European Union programmes and projects funded or foreign financial assistance or national budgetary resources. (4) international resources (allocation) control the use of this law apply if it is specified in the relevant international treaties. (5) If the authority or the Ministry internal audit function implemented in one internal auditor, he applies the same provisions of the Act that are set to the internal audit entity. 4. article. Internal control system internal control system, improving the monitoring and ensure the State Secretary of the Ministry or the head of the authority, in accordance with the law of public administration facilities. Chapter II internal audit system, and the internal audit coordination article 5. Internal audit system (1) the Prime Minister shall determine the internal audit system of his subordinate institutions. (2) the Minister shall determine the internal audit system of his subordinate institutions. On internal audit system of State security institution acting Minister, overseeing the national security agency. (3) the internal audit unit is responsible for the establishment of the State Secretary of the Ministry or the authority. (4) the internal audit department reports directly to the Department of the Secretary of State or the head of the Authority (the authority). (5) the internal audit unit shall comprise the Prime Minister directly subordinate institutions and ministries. (6) the establishment of the internal audit Department of the need to give institutions the Minister except the Ministry, the Minister shall coordinate with the Finance Minister, the evaluation of the following criteria: 1) to the institution of the functions provided and the public; 2) institutions of the European Union, membership in international organizations or foreign financial assistance; 3 the institution granted or managing) the national budget resources and material values; 4) with the institution of the associated risk impacts on national budgetary losses; 5) institutions. 6. article. The internal audit unit the person responsible for the establishment of obligations (1) the State Secretary of the Ministry or authority (authority): 1) is responsible for the internal audit system; 2) internal audit work and audit mechanisms for monitoring the implementation of the recommendations of the Ministry or the authority concerned; 3) approved by the internal audit department's strategic plan and annual plan; 4) decide on the internal audit report on implementation of recommendations; 5) submitted to the Finance Ministry for internal audit to assess the functioning of the unit the necessary information and documents; 6) two weeks after internal audit unit manager's appointment or dismissal from Office shall inform the Ministry of finance; 7) sent law enforcement agencies information on internal audit at the time of the findings, which arose suspicion that they are related to the unlawful activity; 8) sends the national registry examination of information on internal audit at the time of the findings, which affects the functioning of the public administration in General. (2) the State Secretary of the Ministry or the Prime Minister directly subordinate institutions leader: 1) provides the relevant ministries and institutions subordinated to the Minister or the Prime Minister directly subordinate institutions ' internal audit unit plans, as well as its annual activity report timely submission to the Ministry of finance and State control; 2) two weeks after the internal audit system and changes to the internal audit system shall inform the Ministry of finance. 7. article. The internal audit unit tasks

(1) the internal audit unit: 1) developed and submitted for approval to the Secretary of State of the Ministry or the head of the Authority (the authority) in the internal audit strategic plan and annual plan; 2) based on the risk assessment of planned internal audits, which provides an assessment of: (a)) of internal controls compliance with the objectives of the Ministry or authority, Ministry or authority) (b) financial records and other information reliability and sufficiency, c) or the Ministry Department is complying with the law, the functions provided and approved action plans, d) Ministry or institution resource cost efficiency, economic efficiency and functional efficiency protecting resources from loss; 3) gives the Secretary of State of the Ministry or the head of the Authority (the authority) recommendations on necessary improvements to the internal control system; 4) monitor the Ministry's Secretary of State or the head of the Authority (the authority) approved the recommendation of the internal audit implementation; 5) provide advice to promote the Ministry or the attainment of the objectives of the institution; 6) shall be submitted to the Secretary of State of the Ministry or the head of the Authority (the authority) the internal audit department activities annual report, which according to the defined work scope includes the views of the Ministry or the Authority's internal control system; 7) coordinates the internal and external auditors on cooperation and exchange of information; 8) determines the internal auditor training needs; 9) provides internal audit-related work performance and quality monitoring at all stages of the audit. If the Ministry or institution's internal audit unit carried out the tasks required of one internal auditor, a permanent internal audit performance and quality monitoring at all stages of internal audit can provide the other ministries or institutions internal audit Department; 10) provides the national control and external auditing of the auditor monitoring of implementation of the recommendations of the Ministry or the authority. (2) the internal audit unit manager determines the Department internal audit working papers and development methodology. 8. article. Cabinet's competence in the area of internal audit, the Cabinet of Ministers: 1) defines the internal audit work and audit arrangements, as well as cases in which the Cabinet of Ministers established the institution has the right to carry out internal audits in the Department or authority in relation to the European Union's structural and cohesion funds, of the European economic area financial instrument, the financial instrument of the Government of Norway and Latvia and Swiss cooperation programme management; 2) after a proposal of the Minister of finance to the current November 1, determine the overall public administration priorities next auditable calendar year; 3) determines the internal auditor internal auditor certification, certificate and cancellation arrangements. Decision of the State administration of internal auditors certificate or a refusal to grant the certificate shall be taken within a period of 12 months from the date of receipt of the application; 4) determine the internal audit department activities assessment framework and content, as well as the internal audit Department performance evaluation procedures. 9. article. Internal audit department the internal audit independence the Department its task is independent of other departments of the Ministry or authority. 10. article. Internal audit (1) the coordination of the Ministry of finance in the development of the internal audit policy, the purpose of which is to provide assurance on the internal control system of the Ministry and the institutions. The Ministry of finance is responsible for the coordination of internal audit internal audit and long-term development planning. (2) the coordination of the Ministry of finance, internal audit, have the following tasks: 1) prepare and submit to the Cabinet and State control of aggregate annual report on internal audit activities of the ministries and departments of the institutions. The report includes ministries and authorities of the Ministry of internal control systems and institutions; 2) to coordinate the internal auditor training and professional qualifications; 3) ministries and institutions provide advice in the field of internal audit; 4) not less frequently than once every five years to assess the ministries and institutions created internal audit department activities. Finance Ministry officials in the Ministry or the authority concerned has the right to consult the information and documents necessary for the internal audit Department performance evaluation; 5) to monitor the internal auditor certification system; 6) to develop internal audit methodology guidelines. Chapter III internal auditor article 11. The internal auditor's appointment (recruitment) and the release from the post (dismissal) (1) the internal auditor shall be appointed and removed from Office, recruiting and dismissal of State Secretary of the Ministry or the head of the authority, on the basis of civil law, this Act and other legislation. (2) enter into civil or labour relations, in order to fulfil the duties of the internal auditor, the person who can meet the demands of the applicant official post minimum requirements. (3) the internal audit unit manager responsibilities can perform only the person who has obtained the public administration certificate of internal auditor internal auditor certification laws governing the order or society's "internal auditors Institute" internal auditor of recognized competency certificate. (4) the national civil service or employment relationship to the internal auditor shall expire: 1) civil law or labour law cases; 2) for the negligent exercise of the Office or on the violation of ethical principles, which are incompatible with the Office of the internal auditor's requirements. 12. article. Duties of the internal auditor

(1) the internal auditor has a duty to regularly add to knowledge and develop professional skills. The internal audit department and the State Secretary of the Ministry or the head of the institution promotes the internal auditor qualifications. (2) the internal auditor in the performance of official duties, is responsible for the acts or omissions of its legality. If internal auditors have doubts about the legality of the task, his duty is to refuse to fulfil this task in writing informing the officials who granted the task, as well as the next highest officials. (3) the internal auditor shall operate in such internal auditor ethics principles: 1) honesty. Internal auditor carries out its work fairly, with due diligence and responsibility, the Ministry or the Authority's internal ethical principles, not engaging in practices that discredit the profession of the internal auditor or internal audit, Ministry or authorities respect the ethical objectives and contribute to their achievement; 2) impartiality. Internal auditor during the audit examined all the circumstances and evidence, not of the same without intercommunication, not from other people's interests, and the internal audit report reveals all the essential facts about the test; 3) privacy. The internal auditor will exercise its duties in time in a way that would undermine the objectives of the Ministry or the authority. Internal audit work in internal auditor gets a third party only with the State Secretary of the Ministry or authority (authority); 4) competence. Internal auditor in the performance of his duties, uses the knowledge, skills and experience. 13. article. Internal auditor Internal auditor rights have the right to acquaint themselves with the relevant Ministry or authority documents, financial resources and other material values, as well as receive copies of documents from employees and explanations of internal audit-related matters. 14. article. Restrictions on the work of the internal auditor (1) the internal auditor shall not engage in any Ministry or authority directly in the exercise of its functions, the European Union fully or partially funded programmes and projects or foreign financial assistance, in the implementation of individual projects or programmes, as well as the internal control system. Internal auditor the following functions may participate in an advisory capacity. (2) the internal auditor may not be at least a year to audit its functions even before it made the Ministry or the authority. (3) the internal auditor shall report in writing to the internal audit unit manager, but internal audit unit manager — Secretary of State for the Ministry or the head of the Authority (the authority) for each situation that has arisen or could arise a conflict of interest. Chapter IV internal audit Council article 15. Internal audit Council (1) the Council of the internal audit work in accordance with the regulations approved by the Cabinet of Ministers. (2) the Minister of finance approves the Council's internal audit personnel. 16. article. Internal audit the internal audit, the aim of the Council the Council's objective is to promote the quality of internal audit, the internal audit policy and implementation methodology and development ministries and institutions. Transitional provisions 1. With the entry into force of this law shall lapse at the internal audit law (Latvian journal nr. 34, 2010). 2. the Cabinet of Ministers until 1 June 2013 manages in this statutory law on internal audit. 3. the Cabinet of Ministers Act into force, but not longer than until 1 June 2013 has the following Cabinet of Ministers regulations, in so far as they are not inconsistent with this law: 1) Cabinet 2010 august 10 Regulation No 755 ' internal audit departments of comparative tests, the order "; 2) Cabinet of Ministers of 28 September 2010 rules no. 918 "internal audit arrangements"; 3) Cabinet of Ministers on 14 December 2010, Regulation No 1078 of "internal auditor certification procedure". 4. Article 11 of this law, the third part shall enter into force on 30 January 2014. The Parliament adopted Act 2012 December 13. The President a. Smith in Riga 2012 December 28.