Internal Audit Directorate

The Internal Audit Directorate is directly subordinated to the Minister f Defence and carries out internal audit pursuant to the Public Sector Internal Audit Act (PSIAA). The Directorate performs internal audit of all structures, programs, activities and process at the Ministry of Defence, including of the spenders of EU funds and funds under other programmes and of lower level budget spenders under the Minister of Defence which are structures not incorporating their own internal audit units, in compliance with Art. 13 of the PSIAA.
The Director of the Internal Audit Directorate reports directly to the Minister of Defence.
The Directorate has the following functions and tasks under the Law on Defence and Armed Forces of the Republic of Bulgaria (LDAFRB):

• Planning, carrying out and reporting on the internal audit activity in compliance with the requirements of the PSIAA, the Public Sector Internal Auditing Standards, the Code of Ethics for Internal Auditors, the Internal Audit Charter and the methodology for internal audit in the public sector approved by the Minister of Finance;
• Developing, on the basis of risk assessment, a three-year strategic plan and an annual internal audit activity plan to be endorsed by the Minister of Defence;
• Developing an audit plan for each audit assignment, indicating the scope, objectives, duration and allocation of resources for implementing the assignment, the audit approach and techniques, the type and volume of checks.
• Presenting to the Minister of Defence its independent and unbiased assessment of the status of financial management and control systems audited;
• Assessing the processes of risk identification, assessment and management implemented by the Minister of Defence;
• Checking and assessing: compliance with legislation and internal acts and contracts; reliability and comprehensiveness of financial and operating information; the organization of safeguarding of assets and information which is in place; efficiency, effectiveness and economy of operations; performance of tasks, contracts, and commitments undertaken, and achievement of goals;
• When tasked by the Minister of Defence, providing advice and opinion and training aimed at improvement of the processes related to risk management and control, without assuming managerial responsibility on that matter.
• Reporting to and discussing with the Minister of Defence and heads of audited structures the results of each audit assignment performed, and submitting an Audit Report;
• Proposing recommendations in the Audit Reports, aimed at improving the adequacy and effectiveness of the financial management and control systems, assisting the Minister of Defence in developing an Action Plan, and carrying out follow-up activities for monitoring the implementation of the recommendations proposed;
• Preparing and submitting to the Minister of Defence an Annual Internal Audit Activity Report pursuant to Art. 40 of PSIAA;
• Proposing to the Minister of Defence a plan for improvement of the professional qualifications of the internal auditors and communicating with other internal audit cells within the public sector agencies for the purpose of exchange of good practices.