NB! Artiklis oleva teabe taaskasutamisel on vaja kindlasti viidata algallikale!
The author of this paper considers the issue of audit, particularly internal audit, in small local government units. The author argues that an internal audit functioning in a small local government unit without optimal integration into a coherent integral system of audit, control and supervision does not have the relevant possibilities of fulfilling all of its expected responsibilities and helping local political decision makers and managers to achieve their set goals, objectives and targets in a timely manner as well as meeting the expectations of its citizens.
The author argues that there is little to no place at all for internal audit in tiny local government units because of the limited nature of their resources. The additional drain on the limited financial and human resources of a region will decrease the administrative capacity of its local government units and by this means operates as a negative, not a positive factor in serving local inhabitants. This is not only the case of Estonia and states in transformation, but more generic phenomenon. Academic literature does confirm that situation of LGU-s does not depend only on the political order, degree of democracy, liberalism, welfare and socio-cultural environment of a country.
Key words: Audit, Internal Audit, Governance, Local Government, Estonia.