Audit risks and conflicts of interest from the perspective of institutional control organs

Abstract

The conflict of interests in the scope of public management, specifically in the context of internal audit activities, raises audit risks and impedes the fulfillment of the institutional purpose of the audit of adding value and improving the operations of organizations to achieve their objectives. The existence of conflicting interests in the internal audit environment also obliterates its independence, autonomy and objectivity, negatively impacting the results of its work. Considering the institutional vision of control bodies as a primary source, this text aims to analyze the conflict of interests, audit risks and possible impacts on public management. This is qualitative, documentary research, in which such concepts are discussed, extracted from legal and normative provisions, and applied to a hypothetical example situation. From the results observed, it was concluded that the conflict of interests within the scope of public management, specifically in the context of internal audit activities, raises audit risks and impedes the fulfillment of the institutional purpose of the audit of adding value and improving the operations of organizations for the achieving your objectives.