Abstract: The purpose of this article is the description and justification of the direction of changes which inevitably await the area of the functioning of the internal audit within the territorial self-government units in Poland in the context of the draft bill amending the public finance act and certain other acts. The analysis has been preceded by the review of the evolution of the functioning and the definition of the internal audit within the territorial self-government units in Poland over the last twenty years. Next, the focus shifts to the transformations in the functioning of the internal audit within the territorial self-government units and the challenges overcome by the internal auditors in relation to the changes caused by the Sars-Cov2 pandemic. The sources and causes of the planned legislative changes in the act on public finance concerning the internal audit in the sector of public finance in Poland are presented with a special emphasis on the territorial self-government units. The conducted research is based on the study of literature on public finance, internal audit, and managerial control. A detailed analysis and interpretation of legal acts in force in the researched area was done, particularly including the draft bill amending the public finance act and certain other acts (no UD327 in the list of legislative and programme works of the Council of Ministers as of 1st March 2022) to justify the direction of the changes. Materials from the governmental websites including proposals of new regulations in the act on public finance as well as the assessment of the possible consequences of the presented changes were also used.
<a href="https://dx.doi.org/10.15611/fins.2022.2.01">DOI: 10.15611/fins.2022.2.01</a>
<p>JEL Classification: H83, M42</p>
<p>Keywords: managerial control, functioning of theinternal audit, territorial self-government units, administration
efficacy of the territorial self-government unit</p>
<h2>1. Introduction</h2>
<p>Continuing the analysis of the improvement of the functioning of the
territorial self-government units and the introduction of practical
solutions aiming at securing their efficacy (Kołodziej, 2019, pp. 36-43;
Kołodziej, 2020, pp. 100-108; Kołodziej, 2021, pp. 57-66), the author
aimed at presenting and justifying the direction of changes which await
thaue functioning of the internal audit within the territorial
self-government units in Poland in the context of the draft bill
amending the public finance act and certain other acts. The draft bill
introduced in the list of legislative and programme works of the Council
of Ministers (project no UD327), refers also to the area of the
functioning of the internal audit in the territorial self-government
units, and in particular to its improvement and strengthening. The list
of these works was published on the website of the Chancellery of the
Prime Minister<a href="#fn1">1</a>. The published information presents
the causes and the need to introduce the solutions planned in the draft,
as well as a description of the essence of those solutions. Currently,
the draft is subject to internal consultations in the Ministry of
Finance. Due to the nature of the legislative process, it is impossible
to present an exact date of issuing the above-mentioned documents on the
website of the Government Legislative Centre of the Republic of
Poland.</p>
<p>On 6 May 2022, The Minister of Finance submitted the draft bill
amending the public finance act and certain other acts for public
consultations, assessment, and inter-departmental consultations.</p>
<h2>2. Changes
in the definition and functioning of the internal audit in territorial
self-government units from 1998 to 2022</h2>
<p>A type of Polish institution, where the internal audit functions as
an obligatory element or an element supporting the management, is the
territorial self-government unit. The internal audit in territorial
self-government units is (besides institutional internal control,
self-control, functional control, and institutional external control)
one of the elements of managerial control. Due to the necessity of
adjusting Polish legal regulations before the accession of Poland to the
European Union, the category of internal audit in the units of the
financial sector was introduced for the first time in 1998 in the
amended act on public finance from 26 November 1998. Since 2002, an
evolution in the definition and functioning of the internal audit can be
observed. Initially, auditors performed both their auditing tasks
included in the annual plan, as well as the commissioned tasks. The
person entitled to commission the tasks was the manager of the unit
where the auditor was employed. In 2005, the possibility of performing
advisory services was introduced to the activities conducted by an
internal auditor based on the annual plan. For this reason, the auditors
had to include appropriate time for the performance of such services in
their annual plan. In 2009, a regulation was introduced stating that an
internal auditor shall perform assurance and advisory services. The
assurance tasks are defined as a group of activities undertaken to
provide an independent and objective assessment of the functioning of
the managerial control. The advisory services are activities other than
the assurance tasks, and their aim is to improve the functioning of the
institution. The internal audit is meant to support the managers of the
territorial self-government units in Poland on the first level of
managerial control (including their main representatives on the level of
municipality, county, and province) and second level of managerial
control (considering their special position in relation to the
territorial self-government units as a whole). This support is related
to the appropriate realisation of the goals and tasks imposed on
territorial self-government units. In 2002-2005, the internal audit in
the territorial self-government units dealt with the inspection of the
accounting records and entries in the accounting books, with the
assessment of the procurement system and the use of the government
funds, as well as the property administration, the assessment of the
efficacy and economy of financial management. During the following
period, i.e. 2006-2009, the assessment made by the internal audit was
mainly related to the compliance of the conducted activity with the
statutory law in force and the internal policy of a given unit, to the
efficacy and economy of the undertaken activities in relation to the
management and control systems, to the credibility of the financial
report, and the credibility of the report on the execution of the
budget. The next amendment to the act on public finance from 2009
specified the current understanding of the internal audit which is still
in use today, defined there as the performed, independent and objective
activity whose aim is to provide the unit with added value and to make
its functioning more effective. The assessment made by the internal
audit is mostly related to the adequacy, effectiveness, and efficacy of
the managerial control in the department of the governmental
administration or in the unit. Such an audit was called an efficiency
audit, and some authors equated it with the performance audit (Ciak
& Bednarek, 2021, p. 15). The efficiency audit (or the performance
audit) has two forms, namely the audit of immediate results, where
“auditing activities aim at formulating the assessment of the results
reached through the activities undertaken by the unit or given units in
relation to the performance of a given task or to a performed activity,
and the audit of the internal control system in which the performed
auditing activities are concentrated on the carrying out of the research
into the efficacy of the functioning of the system of the internal
control established in the unit/units or within the framework of a given
programme” (Ciak & Bednarek, 2021, pp.19-20). Economic efficiency,
efficacy and effectiveness are terms which to an ever-greater degree
influence the assessment of the functioning of the public finance sector
both in Poland and in other countries. The internal audit supports the
unit in the realisation of its tasks through a systematic assessment of
the managerial control and advisory services. However, the current legal
regulations leave unresolved many of the issues related to the use of
the system of managerial control and the internal audit in the entities
of the public finance sector, particularly in the territorial
self-government units (Kowalczyk, 2020, p. 57). Therefore, there is a
necessity of conforming the tasks performed by the internal auditors to
the novelties introduced to the managerial control system.</p>
<h2>3. The
influence of the epidemic on the performance of the internal audit –
facing the challenges</h2>
<p>The stimuli coming from the organisational milieu, including the
territorial self-government units, and causing the necessity for the
adjustment of all market entities include among others the changes
coming from the economic, legal, demographic, and socio-cultural
background (Michalak, 2010, pp. 312-313). Constant changes require
managers to make effective and quick decisions, look for the best
solutions which allow for flexible reactions and adjustments of the
organisation to the changing environmental conditions. However, more and
more often the so called “black swans” occur. These are phenomena
considered to be unlikely which nonetheless happen and cause
unpredictable, difficult situations characterised by a high degree of
uncertainty (Kotnis, 2014, p. 674). Examples of such ‘black swans’ are:
epidemics (e.g. the Great Plague which appeared in Europe in the 14th
century), financial crises (e.g. the great financial crisis in
1929-1933, and the 2007-2009 crisis), and World Wars I and II
(Janikowski, 2011, p. 137).</p>
<p>The situation brought about by the pandemic posed serious challenges
for the internal auditors, the entire system of managerial control and
the managers of the territorial self-government units (Kowalczyk, 2020,
p. 57). On the other hand, the ‘new’ and difficult situation, created an
opportunity to introduce positive changes in the functioning of the
territorial self-government units which could be observed for example in
the faster pace of resolving administrative matters by citizens, due to
the possibility of contacting the territorial self-government unit
online or making an exact time appointment with the office. The units of
the public finance sector, as a courtesy to the Minister of Finance,
shared their experience related to the influence of the pandemic on the
performance of the internal audit in the year 2020. The shared
information surely constitutes ’good practice’ within the scope of the
functioning of the managerial control system in the sector of the
activities of the internal auditors. The situation caused by the
introduction of restrictions and the partial lockdown of the public
administration (including the self-government administration) resulting
from them, faced the internal auditors with the necessity of improvement
and seeking new methods of work, including for example the use of agile
techniques. The creativity and exchange of experiences related to the
adjustment of auditing procedures to perform typical auditing tasks in
unusual conditions proved indispensable. The performance of an internal
audit online was in the opinion of the auditors themselves fully
functional because of the proper IT tools (used for online work) they
had been equipped with, and thanks to the proper organisation of work<a href="#fn2">2</a>. Internal auditors constitute a
professional group with high qualifications. They possess appropriate
knowledge and skills acquired during professional work which they use
while performing auditing tasks. However, the auditors also indicated
that the direct contact with the employees of the researched unit was
crucial in reaching the goals of the audit. The performance of the audit
online carries the risk of acquiring low quality information.</p>
<h2>4. The
functioning of the internal audit in the territorial self-government
units – justification of the direction of changes </h2>
<p>The main reasons to change the act on public finance in the context
of the functioning of the internal audit in the territorial
self-government units were the results of the control conducted by the
Supreme Government Inspectorate in 2020<a href="#fn3">3</a>.
The subject of the control was the adequacy of performing internal
audits in the territorial self-government units, conducted in 25 offices
from the provinces of Łódź , Subcarpathia (Podkarpackie, Świętokrzyskie,
Wielkopolska, and Zachodniopomorskie. The control covered the time from
1January 2016 to 16 December 2019 (Walendzik & Wilkosz, 2020, p.
81). The results pointed to the negative assessment of the functioning
of the internal audit in the audited territorial self-government units;
the inappropriate organisation of the audit and its inadequate
performance in most of the controlled units rendered it inefficient.
This confirmed the fact that the audit in the researched units did not
improve their performance to a satisfactory degree.</p>
<p>The Supreme Government Inspectorate in its post-control address
obliged mayors, district heads and the province marshals running the
territorial self-government units of the respective level to
implement:</p>
<ul><li><p>the organisational separation of the internal audit body and the
performance of the audit of continuous character,</p></li>
<li><p>the internal and external assessments of the internal audit
performance,</p></li>
<li><p>the use of systemic recommendations issued by the auditors
resulting from the performed auditing tasks in the process of
identification and risk analysis within the framework of the managerial
control<a href="#fn4">4</a>.</p></li>
</ul>
<p>Moreover, the changes within the framework of managerial control and
internal audit were justified by the necessity to support the existing
solutions and improve the efficacy and effectiveness of management in
the public sector in relation to the competence and the ability to
perform public tasks and to spend public funds. Due to the complementary
nature of these issues, the changes within the scope of managerial
control and internal audit are implemented simultaneously. The internal
audit performed in the controlled territorial self-government units was
not used appropriately as a tool whose aim – in accordance with the act
on public finance – is to support the manager of the unit in the pursuit
of the aims and the performance of tasks through a systematic assessment
of the managerial control and the advisory services. The assessment of
the managerial control shall be conducted especially in the aspect of
its adequacy, efficacy, and effectiveness. The auditing activity should
therefore generate necessary conclusions resulting from such an
assessment, especially conclusions of a systemic nature which can
influence the system of managerial control through the construction of
new mechanisms and the amendment of the already existing ones, thus
minimising the risk of the occurrence of irregularities or of failing to
achieve the assumed goals of the unit functioning. It should be
remembered that the internal audit should be performed – in accordance
with the statutory law in force – as an activity supporting the
management in the realisation of its aims and tasks through a systematic
assessment of the conducted managerial control. What is more, one of the
tasks of an internal auditor in territorial self-government units is
advising the manager of the unit, “consulting services supporting the
process of management in the form of reports and conclusions
facilitating the functioning of the unit” (Chojna-Duch, 2017, p.
110).</p>
<p>In its post-control address, the Supreme Government Inspectorate
stated that the performance of the assurance tasks by the internal
auditors in the years 2016-2019 (three- quarters), did not result in
formulating any conclusions of a systemic nature in one-third of the
controlled units, including the conclusions which did not improve the
functioning of the unit. Only a little more than half of all the
conclusions formulated after the assurance tasks had been completed were
of systemic nature. However, just under one-fifth of them suggested the
improvement of the activity of a unit in the performance of its aims and
tasks through a systematic assessment of the managerial control within
the scope of its efficacy and effectiveness.</p>
<p>The Supreme Government Inspectorate ascertained that “the fundamental
reasons behind the ineffective functioning of the internal audit in the
territorial self-government units were their managers’ inability to
perceive the role and the meaning of the activity of the audit in the
functioning of the unit, the lack of continuity of the performance of
the audit and the insufficient number of auditors” (Łukaszuk 2021, p.
242). The faulty organisation of the internal audit was also of
importance, including the lack of sufficient mechanisms guaranteeing its
independence in those units where an audit body was not organisationally
created. The inadequate functioning of the internal audit in the
territorial self-government units was also influenced by planning and
performing auditing tasks with the infringement on the regulations of
the act on public finance and the directive on auditing and the
Standards of the Internal Audit, as well as by the frequent rotation of
auditors (quite commonly auditing activities were performed by one
auditor in several or, in extreme cases, in dozen units
simultaneously).</p>
<p>Above all, the emphasis was placed on the necessity of increasing the
limits of budget expenditures and revenues which if exceeded would bring
about the need for an audit in the territorial self-government units.
The controllers also recommended changes in the regulations governing
the employment of auditors.</p>
<p>Consequently, the amendment of the act on public finance involves<a href="#fn5">5</a> the reinforcement of the position of
the internal audit. The most important changes for the territorial
self-government units in this matter include:</p>
<p>- the possibility of gaining nationally recognised qualifications to
perform internal audit on the basis of a national exam;</p>
<p>- the increase of the amount which if exceeded creates the need for
performing an internal audit (the so called threshold sum) up to 51 000
PLN (currently 40 000 PLN) and the increase of the amount allowing the
performance of an internal audit by a contractor up to 127 000 PLN
(currently 100 000 PLN);</p>
<p>- the inclusion of the territorial self-government units in the
catalogue of entities obliged to provide the Minister of Finance with
the information on performance of the internal audit, as well as the
adjustment of the scope of the information;</p>
<p>- the introduction of the regulations emphasising the substantive and
organisational independence of the internal audit body, as well as
direct subordination to the manager of the unit.</p>
<p>In the draft of the act (changes in article 286 section 1 point 5) it
was suggested that a new procedure of gaining the qualifications
(through a passed national exam) to perform internal audits in the
financial sector units should be introduced. Passing the national exam
would create the possibility to gain qualifications to perform internal
audits. A vital change in this respect is the simultaneous abandonment
of the possibility of gaining the right to perform internal audits by
completing a post-graduate training and internship within the scope of
internal audit (starting from 1 January 2026). Increasing the amount
which, if exceeded, creates an obligation to perform an internal audit
is of crucial importance in the case of small units (changes in article
274). So far, such units were obliged to perform an internal audit in
the following years if a one-time increase above the value which creates
the need for an internal audit occurred when it comes to the sums
included in the financial plan (e.g. an increase resulting from
conducted investments). What was also changed was the amount of
income/revenues or expenses/expenditures presented in the drafts of
financial plans or in the financial plans, as well as in the drafts of
the material and financial plans or in the material and financial plans
of the units which, if exceeded, creates the above-mentioned obligation.
Since the statutory law in force was introduced, the threshold sum has
not been changed. The regulation was introduced in the draft of the bill
which emphasises the necessity of creating internal audit bodies which
would be organisationally independent within the structure of the unit
(changes in article 282). The regulation aims at emphasising the
independence of the auditing bodies necessary due to the nature of the
tasks they perform, as well as the need to secure the cohesion of the
organisational solutions within all the units of the public sector which
have internal audit bodies. Moreover, before the end of January of a
given year the manager of a unit shall present the Minister of Finance
with information on the realisation of the tasks related to the internal
audit performed in the previous year. Compared to the current solutions,
the catalogue of entities (managers) encompassed by this regulation has
been broadened by the addition of the territorial self-government units
(changes in article 295 sections 1, 2 and 3).</p>
<h2>5. Conclusion</h2>
<p>The internal audit in Poland has evolved since the beginning of its
functioning within the territorial self-government units. What has
changed were the definition of the internal audit, the area of its
functioning and the scope of its tasks. This resulted in the creation of
different types of audits, from financial audit consisting in the
inspection of financial operations, through the compliance audit
assessing the compliance of the activity of the units of the public
finance sector including the territorial self-government units, and then
through the operational audit which focuses on the source of the arising
problems, to the audit of efficiency (also known as the audit of the
performed tasks) which consists in assessing the efficacy and
effectiveness of the functioning of the territorial self-government
units. As is evident, changes in this area were and will be necessary
due to the constant need to improve the functioning of the territorial
self-government units. The work of internal auditors in the territorial
self-government units over the last twenty years has been constantly
open to the process of change. However, the challenges with which this
professional group is faced are duly undertaken and performed. The
amendment to the Law on Public Finance envisages re-enforcing the
position of internal audit, through:</p>
<p>- the possibility of acquiring a nationally recognized qualification
for internal auditing through a state exam;</p>
<p>- increasing the amount that, if exceeded, triggers an internal
audit</p>
<p>- including self-government units in the catalogue of entities
obliged to provide the Minister of Finance with information on
conducting an internal audit, as well as adjusting the scope of this
information;</p>
<p>- introduction of regulations emphasising the substantive and
organizational independence of the internal audit body and direct
subordination to the head of the entity.</p>
<p>The above will have a positive impact on the perception of the
internal audit institution in the public finance sector.</p>
<p>Internal auditors constitute a professional group with high
qualifications (such as higher education, appropriate qualifications to
perform internal audits)<a href="#fn6">6</a>. The auditors also possess adequate
knowledge and skills acquired in the process of their professional work
which they use in the performance of the auditing tasks. Legal changes
or other challenges related to the need to adjust to the new and
changing conditions do not pose an obstacle that the auditors would be
unable to overcome. They rather treat change as an element of learning
something new. Certain negligence, shortcomings or nonfeasance may
result from the lack of systemic solutions which should however soon be
introduced. They can also result from the negligence of the managers of
the territorial self-government units, who are responsible for securing
the right conditions necessary for the functioning of the audit. Their
knowledge of the potential of an audit, its role and the scope of its
activity often leads to its competent use as a tool which is meant to
support the unit in its functioning.</p>
<p>References</p>
<p>Chojna-Duch, E. (2017). <em>Prawo finansowe, finanse publiczne.</em>
Warszawa: Oficyna Prawa Polskiego.</p>
<p>Ciak, J., & Bednarek, P. (2021). Audyt efektywnościowy czy audyt
wykonania zadań w jednostkach sektora finansów publicznych – przegląd
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samorządu terytorialnego, nr ewid.76/2019/P/19/074/LKI, Delegatura NIK w
Kielcach, kwiecień 2020 r. Retrieved Februar, 10, 2022 from
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Katowicach.</p>
<p>Kołodziej, D. (2019). Rola audytora wewnętrznego oraz inspektora
ochrony danych osobowych w jednostce samorządu terytorialnego. W: P.
Bednarek (red.), <em>Audyt wewnętrzny a ocena ryzyka kondycji
ekonomicznej podmiotów gospodarczych i instytucji</em> (s. 36-43).
Wrocław: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu.</p>
<p>Kołodziej, D. (2020). Audyt wewnętrzny w jednostce samorządu
terytorialnego – komórka wewnętrzna czy firma zewnętrzna? <em>Prace
Naukowe Uniwersytetu Ekonomicznego we Wrocławiu</em>, <em>64</em>(5),
100-108.</p>
<p>Kołodziej, D. (2021). Miejsce audytu wewnętrznego i kontroli
wewnętrznej w systemie kontroli zarządczej jst w Polsce. <em>Prace
Naukowe Uniwersytetu Ekonomicznego we Wrocławiu</em>,
<em>65</em>(3).</p>
<p>Kotnis, M. (2014), Modele zarządzania ryzykiem w warunkach
niepewności. <em>Zeszyty Naukowe Uniwersytetu Szczecińskiego</em>,
(802), <em>Finanse, Rynki Finansowe, Ubezpieczenia</em>, (65), 669-678.
Retrieved from <a href="http://www.wneiz.pl/frfu">www.wneiz.pl/frfu</a>.</p>
<p>Kowalczyk, O. (2020). Obszar kontroli zarządczej oraz audytu
wewnętrznego w świetle planowanych zmian w ustawie o finansach
publicznych. <em>Studia Prawno-Ekonomiczne</em>, CXVII, 43-59.</p>
<p>Łukaszuk, A. (2021). Kondycja audytu wewnętrznego w jednostkach
samorządu terytorialnego z uwzględnieniem jakości audytu prowadzonego
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organizacji, czyli „moda na zmiany”. <em>Acta Universitatis Lodziensis
folia Oeconomica</em>, (234), 311-321.</p>
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finansów publicznych, Raport na podstawie danych za 2020 rok (2021).
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kwiecień. Retrieved March, 1, 2022 from</p>
<p>
<a href="https://www.gov.pl/web/finanse/raport-benchmarking-audytu-wewnetrznego-w-jednostkach-sektora-finansow-publicznych-za-2020-r">https://www.gov.pl/web/finanse/raport-benchmarking-audytu-wewnetrznego-w-jednostkach-sektora-finansow-publicznych-za-2020-r</a>
</p>
<p>Skoczylas, A. & Nowak, W. (2011). Ewolucja audytu wewnętrznego w
polskim sektorze finansów publicznych. <em>Zeszyty Teoretyczne
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<p>Ustawa z dnia 30 czerwca 2005 r. o finansach publicznych (Dz.U. nr
249, poz. 2104)</p>
<p>Ustawa z dnia 27 sierpnia 2009 r. o finansach publicznych (Dz.U. nr
157, poz. 1240. z późn. zm.)</p>
<p>Ustawa z dnia 26 listopada 1998 roku o finansach publicznych (Dz.U.
nr 155, poz. 1014, ze zm.)</p>
<p>Uzasadnienie do projektu nowelizacji. Retrieved May 6, 2022 from
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<p>Walendzik, G. & Wilkosz, K. (2020). Nieefektywny audyt
wewnętrzny. <em>Czasopismo Naukowe Kontrola Państwowa</em>, 65(2020)–
5(394)–wrzesień –październik, 77-97.</p>
<ol><li><h2>1. Among
others the draft bill amending the public finance act and certain other
acts can be found on the website of the Council of Ministers: https://www.gov.pl/web/premier/projekt-ustawy-o-zmianie-ustawy-o-finansach-publicznych-oraz-niektorych-innych-ustaw4
(access: 1st March 2022)</h2>
<a href="#fnref1">↩︎</a></li>
<li><p>Full information on the opinion of the internal auditors
on the influence of the epidemic on the performance of the internal
audit can be found on the website of the Ministry of Finance:
https://www.gov.pl/web/finanse/raport-benchmarking-audytu-wewnetrznego-w-jednostkach-sektora-finansow-publicznych-za-2020-r
(access: 1st March 2022)<a href="#fnref2">↩︎</a></p></li>
<li><p>The information on the results of the control
<em>Internal Audit in the Territorial Self-government Units</em>,
LKI.430.007.2019 identification number 76/2019/P/19/074/LKI, NIK, Office
in Kielce 2020.<a href="#fnref3">↩︎</a></p></li>
<li><p>The Supreme Government Inspectorate in the
<em>Information on the Results of the Control of the Internal Audit in
the Territorial Self-government Units</em> requested the preparation of
an amendment of the act on public finance by the Minister of Finance
introducing:</p>
<p>1) a higher limit for the amount of income and revenues or the amount
of expenses and expenditures stated in the budget resolution which, if
exceeded, create an obligation to perform an internal audit in the
territorial self-government unit, as well as a higher limit for those
sums related to the possibility of commissioning a contractor who is not
employed by a given unit to perform the audit;</p>
<p>2) rules stating that the minimal number of employees in a given
office holding the auditor’s position (or positions of auditors, in the
case of part-time employment) should amount to at least one full-time
post;</p>
<p>3) solutions in relation to the coordination of the performance of
the internal audit in the units of the public finance sector entitling
the Minister of Finance to receive information on the organisation and
performance of the audit in the territorial self-government units and to
disseminate good practices in the functioning of these units on the
basis of this information, as well as to indicate the ineffective
solutions related to the performance of the audit in many territorial
self-government units within one year by a contractor auditor.<a href="#fnref4">↩︎</a></p></li>
<li><p>More information on the topic of the changes in <em>the
Justification of the Draft of the Amendment</em> <a href="https://legislacja.rcl.gov.pl/projekt/12359451/katalog/12877111#12877111">https://legislacja.rcl.gov.pl/projekt/12359451/katalog/12877111#12877111</a>(access:
6th May 2022)<a href="#fnref5">↩︎</a></p></li>
<li><p>In accordance with article 286 section 1 of the act of
27 August 2009 (Journal of Laws 2009 no 157 position 1240 with
subsequent amendments), a person who wants to become an internal
auditor: 1) has to have the citizenship of a member state of the
European Union or another country whose citizens, under international
agreements or the provisions of the community law, have the right to
find employment on the territory of the Republic of Poland; 2) has to
have a full capacity to perform acts in law and has to enjoy full civil
rights; 3) could not have been punished for an intentional offence or a
fiscal offence; 4) has to have a university degree; 5) has to have the
following qualifications to perform internal audits: a) one of the
following certificates: Certified Internal Auditor (CIA), Certified
Government Auditing Professional (CGAP), Certified Information Systems
Auditor (CISA), Association of Chartered Certified Accountants (ACCA),
Certified Fraud Examiner (CFE), Certification in Control Self Assessment
(CCSA), Certified Financial Services Auditor (CFSA) or Chartered
Financial Analyst (CFA), or b) in years 2003-2006 passed an exam for an
internal auditor in front of the Examination Committee established by
the Minister of Finance, or c) has qualifications of a chartered
accountant, or d) has a two-year experience within the scope of the
internal audit and a certificate of finishing a post-graduate training
in internal auditing, issued by an organisational unit which, on the day
of issuance of the certificate, was certified, in accordance with
separate provisions, to confer an academic title of a PhD in economics
or law.<a href="#fnref6">↩︎</a></p></li>
</ol>