Internal auditing amongst Portuguese municipalities

This paper presents the main results of a research that had as general purpose to study the existence and implementation of internal auditing procedures within Portuguese municipalities, as a consequence of local management reforms. Using a questionnaire, we have searched for: knowing the features of the internal auditing service/ department, if existent; gathering information on the practice of internal auditing standards and procedures, focusing on economic and financial auditing; and verifying which issues are object of internal auditing, namely those related to the accounting and internal control systems. We have also assessed the importance practices and objects of internal auditing are given, even if non existent. Given that the questionnaire was built on the basis of auditing standards used in the private sector, this research allows to assess the possibility for these to be applied and useful for Portuguese municipalities.