Evaluation of internal controls in the public sector: the case of the General Comptroller’s Office of the State of Pernambuco

Abstract

The supposition that weaknesses in internal control systems have facilitated emblematic cases of
fraud and corruption around the world, especially in the Brazilian public sector, has raised questions about
the functioning of these systems, and the evaluation of internal controls is an important item on this discussion. The ability of this evaluative procedure to identify weaknesses, vulnerabilities and the level of
effectiveness of the internal control system, as well as to facilitate its improvement, in support of the organization’s objectives and the legitimacy of public management in society, may deviate according to
the configuration assumed by the evaluators. In order to investigate the procedure for the evaluation
of internal controls in the public sector, this research was instrumented by a case study within the scope
of the General Comptroller’s Office of the State of Pernambuco (SCGE). The results demonstrated that
the evaluation of internal controls is related not only to the procedural apparatus, but also to the cognitive
aspect that involves the process, since everyone needs to understand the meaning of the evaluation
and its repercussions at all stages so that the desired ends can be achieved.