Supervising System and Business Control of Local Self-Government Units in Performance Audit Function

Abstract

As everywhere in the world, resources in the Republic of Serbia are limited. Almost half of the resources are covered by public spending. A well-established oversight of the budget process provides real assistance in performance audit, and it is also an instrument of a permanent guidance and correction. The State Audit Office is often assigning itself tasks to carry out the activities related to the performance audit process. In this way, the state audit approaches systematically to the examination of business activities of all budget users. The basic task of the performance audit lies in examining the economy, efficiency, and effectiveness of the use of public funds by using various analyses, making comparisons, and analyzing indicators. This chapter will describe the proposal for a procedure that ensures a continuous process of supervision and control of business operations in local self-government units in the function of performance audits.