FOCUS –internal control system AND management science
The study Csaba Lentner focuses on internal control within the area of public finance control, the comprehensive reform of which started in 2010. The aim is to draw attention to the legal background of the internal controls of budgetary organisations and how to improve the efficiency of the use of public funds. The paper addresses in detail the requirements arising from European and Hungarian legal standards, the connection with other control aggregates of public finances and taxonomic relationships. The study outlines the regulation and methodological background of internal audit. An additional unique feature of the study is that it presents the educational system of fiscal and internal audit training for government officials at the National University of Public Service and the scientific summary of experiences resulting from the questionnaire survey of graduates.
István Fekete in his work presents a potential approach to demonstrate how risk management may be used efficiently to support strategic and project level decision-making, if there are no past data available, or not in sufficient quantity. In the second part of the study the author shows the experiences of the implementation of the risk management system - pursuant to the Directives - via the example of a large company. Relying partly on this and using his own experiences of many years the author specifies the factors supporting and hindering the implementation of the risk management system. According to his intention, the author specifies messages that may be helpful to practising experts to avoid the detection, evaluation and management of risks becoming administrative tasks. They must instead contribute to the long-term successful operation of the using organisation.
István Kunos in his analysis, concludes that an appropriately completed coaching process always results in the deepening of self-knowledge, which is the key element of the factors that mostly influence the quality of our life. As a matter of fact, it is a life-long process, on which we may work up to the last minute. Another important factor is that the process is able to become ‘self-propelled’, meaning that over time the supported person, group, etc. shall learn the philosophy, approach and the know-how of coaching, enabling the independent and successful use of the method and the tools learnt and practised in coaching later. I seek to present all this with particular attention given to presenting the ideology of coaching from several perspectives via the historic milestones, the demonstration of its mechanism, the conclusions to be drawn from the connections and the challenges of the future. A further objective of the present study is to shed light on the potential of coaching to support the operation of the internal control systems of organisations via their managers.
Tamás Kovács observed in his work that internal auditors not only perform assurance activities but also provide consulting services. The internal audit consulting activities are services provided to heads of organisations, resulting in added value. This paper has been prepared with the objective to explore such activities for their importance and practical implementation in budgetary institutions, municipalities, and publicly owned companies. In the course of the study, primary research has been conducted, in addition to processing literature and legal regulations. We have found that the consulting role for supporting decision-makers as part of internal auditing has been reinforced with increased importance in the public sector as well. However, we have found that further steps could be taken to preserve independence and reinforce regularity and efficiency, for example, by giving a stronger focus to these subject matters through training programmes or providing more detailed recommendations.
The studies published in this issue can be viewed and downloaded at the following link