External & internal auditors'collaboration

2018-10-11 17:27:00   |   Author: Nemesvári-Horthy Eszter

This week, three auditors of the State Audit Office of Hungary attend a three-day international interactive training on co-operation between external and internal auditors. The first day of the training provided an overview to the participants on the regulatory and methodological frameworks, whereas on the second day the participants learned about the practices based on different country case-studies.

On the first day of the international training, experts in the relevant field held lectures, which provided participants with insight into the regulatory and methodological framework forming ground for cooperation between external and internal auditors. In this context, the experts in their lecture have pointed out the role and responsibility of external and internal auditors in the functioning and reform of the public sector.


The participants could further deepen their knowledge regarding the relevant international standards and the model of defense lines. The latter is an important tool for integrating and co-ordinating the overall activities of public sector organizations in order to optimize the management, risk management and oversight of audit activity.


Co-operation between external and internal auditors


During an interactive lecture, the participants of the training discussed the role of independence, objectivity and quality assurance in the audit work. Then after they defined the most important regulatory and control areas in the context of possible cooperation between external and internal auditors by identifying the priorities for co-operation.

On the second day of the training, the participants learned different internal control models, moreover they gained insight into the so-called audit committees, and the effects and contexts of the individual and institutional factors of external and internal audits.

The event continued with country case-study presentations demonstrating practical examples, related to which, Szabolcs Csernyák dr., auditor of the State Audit Office of Hungary presented the framework and practice of cooperation between internal and external auditors in Hungary.


Co-operation between external and internal auditors

All country case-study presentations pointed out that cooperation between internal and external auditors is by all means useful, however the level of co-operation vary in each country. For example, in Slovenia and Serbia only joint events give room for knowledge transfer, whereas in Albania and Hungary there are formalized foundations of cooperation. In Hungary, the relationship between external and internal controls also appears in the regulatory environment.

In addition to the Hungarian participants, other representatives from eight countries (Albania, Netherlands, Croatia, Kosovo, Montenegro, Serbia, Slovenia and Turkey) including external and internal auditors from supreme audit institutions and ministries are present. As a result of the training, participants will be able to utilize the knowledge in their practical work later on.

Eszter Nemesvári-Horthy
Gábor Görgényi
Szabolcs Csernyák dr.