Source: https://www.global-regulation.com/translation/bulgaria/3356269/law-amending-and-supplementing-the-law-on-internal-audit-in-the-public-sector.html
Timestamp: 2018-11-14 14:11:34
Document Index: 484987871

Matched Legal Cases: ['§ 1', 'art. 4', '§ 2', '§ 3', 'Art. 12', 'art. 62', 'art. 21', 'art. 62', '§ 4', 'art. 13', 'art. 62', 'art. 12', '§ 5', 'art. 14', '§ 6', '§ 7', 'art. 16', '§ 8', 'Art. 18', '§ 9', 'art. 21', 'art. 12', '§ 10', 'art. 22', '§ 11', '§ 12', 'art. 25', '§ 13', '§ 15', '§ 16', 'art. 29', 'art. 19', '§ 17', 'art. 31', 'art. 164', 'art. 8', '§ 18', 'Art. 32', 'art. 48', '§ 19', 'art. 33', '§ 20', 'art. 34', '§ 21', '§ 22', '§ 23', 'art. 38', 'art. 48', '§ 24', 'Art. 39', '§ 25', 'art. 40', 'art. 18', 'art. 12', '§ 26', 'art. 47', 'art. 9', 'art. 12', '§ 27', 'art. 48', '§ 28', 'art. 50', '§ 29', 'art. 52', 'art. 12', '§ 30', 'art. 53', '§ 31', 'art. 56', 'art. 47', '§ 32', 'art. 14', '§ 33', 'art. 12', 'art. 12', '§ 34', 'art. 18', '§ 35', 'Art. 22', '§ 1', '§ 1', '§ 36', 'art. 22']

Machine Translation of "Law Amending And Supplementing The Law On Internal Audit In The Public Sector" (Bulgaria)
Law Amending And Supplementing The Law On Internal Audit In The Public Sector
Original Language Title: Закон за изменение и допълнение на Закона за вътрешния одит в публичния сектор
Read the untranslated law here: http://parliament.bg/bg/laws/ID/15549/
Name of law Law amending and supplementing the law on internal audit in the public sector Name of the Bill a bill amending and supplementing the law on internal audit in the public sector adoption date 22/05/2016 number/year Official Gazette 53/2016 Decree No 215
To be published in the Official Gazette the law amending and supplementing the law on internal audit in the public sector adopted by the HLIIÌ National Assembly on 22 June 2016.
amending and supplementing the law on Assembly appointed audit in the public sector (official SG. 27 of 2006; amend., SG. 64 and 102 in 2006 and 43/69 since 2008, and 71/110 from 2008 and 42/44 of 2009, issue 78, 80 and 82 of 2009, no. 99 of 2009. , PC. 54 of 2010, PC. 8 and 98 by 2011, issue. 50 by 2012. 15 by 2013, PCs. 101 by 2015 and St. 43 by 2016)
§ 1. In art. 4, the words "with the standards for internal audit ' shall be replaced by" international standards for the professional practice of internal auditing ".
§ 2. Articles 9, 10 and 11 are hereby repealed.
§ 3. Article 12 is amended as follows:
"Art. 12. (1) the internal audit in the public sector carried out by the internal audit unit, built into the structure of the Organization, which is directly subordinate to the head of the organization or of the collective body of Government. The unit consists of internal auditors who are employees of the Organization, one of whom is the head.
(2) the internal audit unit shall be constructed in:
1. the administration of the President, the National Assembly, the Council of Ministers, ministries, National Insurance Institute, the national health insurance fund and the State Fund "Agriculture";
2. The Supreme Judicial Council and the Court of Auditors;
3. the municipalities whose budgets exceed $ 10 million. BGN;
4. other organizations whose leaders are primary spenders with a budget and the budget exceeds $ 10 million. BGN;
5. the organizations listed in the annex, whose executives are secondary ushers with budget;
6. commercial companies, including medical institutions, with over 50 percent State and/or municipal participation in the capital and with annual turnover exceeding 10 million. EUR for each of the past three years;
7. commercial companies whose capital is owned by the companies under item 6 with annual sales over $ 10 million. EUR for each of the past three years;
8. State-owned enterprises under art. 62, para. 3 of the commercial code with annual sales over $ 10 million. EUR for each of the past three years.
(3) Total unit for internal audit may be set after consultation with the Minister of finance in a municipality on the basis of an agreement concluded by two or more municipalities that are adjacent or fall within the boundaries of an administrative area and the budget of each of them shall not exceed $ 10 million. leva. This unit performs internal audit activity in the municipalities under the agreement.
(4) with the written consent of the Minister of Finance on the basis of a reasoned proposal of the relevant authorising officer with a budget can build internal audit unit and in other organizations.
(5) except in the cases referred to in paragraph 1. 2, 3 and 4 activity of internal audit can be carried out by persons who are not employees of the organisation concerned and comply with the requirements of art. 21, para. 1.
(6) the Unit for internal audit in the companies with State and/or municipal participation in the capital and in State-owned enterprises under art. 62, para. 3 of the commercial code, which are other than those referred to in paragraph 1. 2, s. 6-8, can be created by decision of the administrative authorities.
(7) when the budget, according to the annual turnover of the organizations under para. 2, item 3, 4, 6, 7 and 8 reduces under 10 million. EUR for two consecutive accounting periods, the internal audit unit shall not be adjourned, then the relevant competent authority shall adopt a decision on the functioning of the internal audit.
§ 4. In art. 13 make the following amendments and additions:
(1) the internal audit carries out internal audit of:
1. all structures, programmes, activities and processes in the Organization, including operations financed with funds from the European Union;
2. organizations whose leaders are spenders, with a budget of a lower level, where there are no internal audit unit;
3. commercial companies with more than 50 per cent State and/or municipal participation in capital and companies whose capital is owned by such companies in which there is no link for internal audit;
4. State-owned enterprises under art. 62, para. 3 of the commercial code, in which there is no link for internal audit;
5. tissue establishments – companies with 100 per cent State-owned or municipal participation in the capital, as well as with mixed state and municipal participation in which there is no link for internal audit. "
"(2) on the initiative of the authorising officer by delegation, respectively, with a budget of the authority, who shall exercise the rights of ownership of capital, the internal audit unit may conduct audit engagements of all organizations and entities in its system and when they have links for internal audit."
"(4) the internal audit unit of the organisation, whose head is the primary officer by budget, respectively – a body which shall exercise the rights of ownership of capital, monitor and coordinate the planning, conduct and reporting of the activities of the internal audit units of the organizations whose leaders are secondary units, budget and of commercial companies and State enterprises under art. 12, al. 2, s. 6-8. "
"(5) in connection with the performance of the audit engagement for giving confidence the unit for internal audit may carry out checks on the structures and persons outside the Organization in which they operate."
"(6) the structures and persons referred to in para. 5 must be connected with the activities of the Organization and/or are recipients of budgetary funds or resources of the programmes and funds of the European Union. Checks at al. 5 shall be carried out after prior notification and coordination with management of structures and persons that will be carried out. "
§ 5. In art. 14, para. 4, the words "shall not include trainee Auditors ' shall be replaced by ' shall include and trainee Auditors".
§ 6. Article 15 shall be repealed.
§ 7. In art. 16 para. 2 is repealed.
§ 8. Article 18 shall be amended as follows:
"Art. 18. (1) in the ministries, in the municipalities of built units for internal audit and the State Fund "Agriculture" – paying agency must establish audit committees, which consist of 3 to 5 members, including the President, as at least two-thirds of them are external to the Organization faces. Members of audit committees should:
1. have acquired educational qualification degree "master";
2. have at least 5 years of experience in the field of management and control, internal or external audit;
3. do not participate in more than two Audit Committee.
(2) the composition of audit committees is determined after conducting a procedure under the Ordinance referred to in para. 11 for a three-year period, as follows:
1. in the ministries concerned-from the Minister in consultation with the Minister of finance;
2. in the Ministry of finance – by the Minister of finance;
3. in the municipalities, by the municipal councils;
4. in the State Fund "Agriculture" – by the Management Board in agreement with the Minister of finance.
(3) the communities shall forward annually to the Minister of finance information on the composition of audit committees.
(4) organisations outside those under para. 1, in which there are formed unit for internal audit can audit committees are established by decision of the leadership of the organization.
(5) the Audit Committee shall have the following powers:
1. align the status and size of the internal audit unit, strategic and annual plans for internal audit activity;
2. consider and adopt a decision on the annual report on internal audit activities;
3. meets when necessary and to deliver opinions on audit reports carried out audit engagements and in all significant matters related to internal audit in the Organization;
4. monitor the risk management process in your organization and deliver opinions with recommendations for improvement;
5. carries out interaction with external auditors;
6. monitor the financial reporting processes in the Organization and deliver opinions with recommendations for their improvement;
7. monitor the effectiveness of internal control systems within the Organization and deliver opinions with recommendations to improve them.
(6) the Audit Committee shall meet at least once every two months, when more than half of its members.
(7) the decisions and opinions of the Audit Committee shall be taken by a majority of more than half of all its members. The Committee may decide in absentee. It is not permitted to refrain from voting.
(8) the opinions of the Audit Committee under para. 5, item 3, 4, 6 and 7 shall be sent to the head of the organization that performs the given recommendations in them. In the event of failure to comply with the recommendations made by the head of the Organization and the status of misalignment of internal audit unit and the strategic and annual plans for internal audit activities the Audit Committee sends information to the Minister of finance.
(9) the members of the Audit Committee receive remuneration for participation in the meetings of the Audit Committee, equal to half the minimum wage, but not more than one minimum wage per month.
(10) the Audit Committee is chaired by the President, who organizes and convenes the meetings of the Committee.
(11) the Council of Ministers shall adopt Ordinance concerning the procedure for the determination of the composition and activities of the audit committees in public sector organisations. "
§ 9. In art. 21 the following modifications are made:
"(5) the appointment and dismissal of the head of internal audit and of the cheese rešnite Auditors in the organizations under art. 12, al. 2, item 1, 3, 4 and 5, para. 3 and 4 shall be carried out after written consent by the Minister of finance. Request for appointment and dismissal shall be accompanied by reasons and copies of relevant documents. "
2. in the Al. 6 figure "14" are replaced by "7".
3. in the Al. 7 the words "under para. 1 and 2 "shall be replaced by the words" this Act ".
§ 10. In art. 22 is made the following changes and additions:
a) in paragraph 1, after the word "leadership" a comma and added "Audit Committee";
b) in paragraph 2, the words "including classified, according to their level of access" and the comma after them are deleted, and the word "business" is added "subject to the restrictions or special procedure for access provided for by law".
§ 11. Article 23 is hereby repealed.
§ 12. In art. 25 the words "audit standards determined for b" shall be replaced by the words "international standards for the professional practice of internal auditing".
§ 13. Article 24 is hereby repealed.
(a)) in the text before paragraph 1 the word "including" shall be deleted;
1. shall prepare and submit to the head of the Organization and of the Audit Committee or the collective authority of the status of project management unit for internal audit, strategic and annual plan of internal audit activities; "
c) in item 4 the words "in the unit, who directs" shall be deleted;
(d) in point 6), after the word "developed" insert "procedures and" and the words "when necessary" and the comma in front of them are deleted;
"7. the offers of the head of the organisation to assign specific tasks to the expert by the organization or beyond, when employees of the internal audit unit do not have special knowledge and skills required for the performance of the audit engagement;"
is created) so 8-12:
"8. report the results of the audit engagements, the recommendations and results of the implementation of the follow-up of the recommendations of the head of the Organization, and, if necessary, and the Audit Committee or of the collective management body;
9. submit an annual report on internal audit activities of the head of the Organization of the Audit Committee or the collective management body;
10. report on all cases in which he was limited the scope of the internal audit activity of the head of the Organization of the Audit Committee or the collective management body;
11. have access to the President and to the members of the Audit Committee and participate in the meetings of the Committee;
12. coordinate interaction with external auditors. "
§ 15. Article 28 shall be repealed.
§ 16. In art. 29 following amendments and supplements shall be made:
1. In paragraph 8. 1, after the word "ensure" is added ", and" after the word "quality" is added "and" improvement.
"(2) the internal reviewers include ongoing monitoring, periodic self-assessments and periodic assessments by others in the organization who know the internal audit practice and meet the requirements of art. 19, para. 2. "
§ 17. In art. 31 is made the following changes and additions:
1. In paragraph 8. 1 the words "and structures" be deleted, and after the word "or" shall be inserted "structures" and a comma after it.
"(5) the internship for people with higher legal education, acquired the Audit Office is counted for a traineeship under art. 164, para. 1-7 of the law on the judiciary and in art. 8, al. 1, item 3 of the law on notaries public and notarial activity. "
§ 18. Article 32 shall be amended as follows:
"Art. 32. Planning of the work of internal audit is conducted on the basis of a risk assessment and in accordance with the instructions of the Minister of finance under art. 48, para. 2, item 3. The results of the planning are reflected in the three-year strategic plan and annual plan. "
§ 19. In art. 33 para. 2 shall be amended as follows:
"(2) the strategic plan, and the changes therein shall be agreed by the Audit Committee or the relevant collective management authority and approved by the head of the organization."
§ 20. In art. 34 following amendments and supplements shall be made:
"(4) the annual plan, and the changes therein shall be agreed by the Audit Committee or the relevant collective management authority and approved by the head of the organization."
"(5) the strategic and annual plan of internal audit activity in the municipalities are presented for information purposes, of municipal councils."
§ 21. Article 35 shall be repealed.
§ 22. Article 37 shall be repealed.
§ 23. In art. 38 following amendments and supplements shall be made:
(1) the results of each audit engagement of confidence shall be presented to and discussed with the head of the Organization and with the heads of entities whose activities are audited and, if necessary, and with the Audit Committee or with the collective body of Government. "
"(3) the results of each audit engagement for consulting are documented, discussed and reported depending on the nature of the commitment.
(4) Reports of executed in accordance with the instructions of the Minister of finance under art. 48, para. 2, item 3 audit engagements and are sent to the Minister of finance. "
§ 24. Article 39 shall be replaced by the following:
"Art. 39. (1) as a result of the implementation of each audit engagement for confidence the heads of the audited entities shall draw up action plan for the implementation of the adopted recommendations, which shall be approved by the head of the organization.
(2) internal auditors track the implementation of the recommendations of the audit engagements for confidence, having evaluated the adequacy, effectiveness and timeliness of actions taken and discussed with the leadership of the Organization, and, if necessary, and with the Audit Committee, the risk of not taking action. "
§ 25. In art. 40 following amendments and supplements shall be made:
1. In paragraph 8. 2 the word "provide" shall be replaced by "submit", after the words "Audit Committee" a comma and the words "under art. 18 if there is formed a "shall be replaced by the words" or of the relevant collective management authority ".
"(4) the head of the internal audit unit in the Organization, whose Director is major officer by budget, with the exception of the Supreme Judicial Council and the Court of Auditors, shall prepare and submit to the head of the Organization a summary annual report no later than February 28 of the following year. The summary report contains information from the annual reports of the internal audit units of the secondary ushers, commercial companies and State enterprises to the organization. "
3. in the Al. 5, the words "28 February" shall be replaced by the words "10 March".
4. in the Al. 6 the words "para. 1, paragraph 2 "shall be replaced by" para. 2, item 2. "
"(7) heads of internal audit in the companies and in State-owned enterprises under art. 12, al. 2, s. 6-8 shall draw up an annual activity report on the internal audit, which is sent to the unit for internal audit of the authority concerned, who shall exercise the rights of ownership, by 31 January of the following year. "
§ 26. In art. 47, para. 1 the words "under art. 9 "shall be replaced by" referred to in art. 12. "
§ 27. In art. 48 following amendments and supplements shall be made:
3. provide guidance on priorities and areas of audit activity in planning internal audit, with the exception of the Supreme Judicial Council and the Court of Auditors. "
§ 28. In art. 50 the comma after the words "data units for internal audit ' shall be replaced by" and "and the words" as well as a register of the statutes of the internal audit units and the comma in front of them are deleted.
§ 29. In art. 52 words "art. 12, al. 1, item 1, 3 and 4 and al. 2 "are replaced by" article. 12, al. 2, item 1, 3 and 4 and al. 3-5.
§ 30. In art. 53, para. 1, after the words "Ordinance" is added "terms and conditions" and a comma.
§ 31. In art. 56 following amendments and supplements shall be made:
1. In paragraph 8. 1, the words "of the unit under art. 47, para. 2 ' shall be deleted.
2. in the Al. 2, after the words "Minister of finance" shall be inserted "or by officials authorised by him".
§ 32. 1 in § "additional provision" following amendments and supplements shall be made:
1. In paragraph 5, the words "under art. 14 ' shall be deleted.
2. Create is that 7 and 8:
"7." annual turnover is the total amount of revenues, including from financing, according to the annual financial statement.
8. ' international standards for the professional practice of internal auditing "are the international standards for the professional practice of internal auditing issued by the Institute of Internal Auditors, Altamonte Springs, Florida, United States, and their translation into Bulgarian language published by the Institute of internal auditors in Bulgaria."
§ 33. In the annex to article 2. 12, al. 1, item 5 the following modifications are made:
1. the words "art. 12, al. 1, item 5 "shall be replaced by" art. 12, al. 2, item 5.
2. Lines No. 5 and no. 10 shall be deleted.
Final provisions § 34. Within 6 months from the entry into force of this law the Council of Ministers shall adopt Ordinance referred to in art. 18, al. 11.
§ 35. The Bulgarian National Bank (official SG. 46 of 1997; amended and 49/153 of 1998 No. 20 and 54 of 1999, 109/2001, no. 45 of 2002, no. 10 and 39 since 2005, issue 37, 59 and 108 of 2006, no. 52 and 59 since 2007, issue 24 , 42 and 44 of 2009, PCs. 97 and 101 of 2010 and PC. 48 and 62 by 2015.) make the following changes and additions:
"Art. 22. (1) the internal audit of the Bulgarian National Bank shall be carried out by the internal audit unit, led by Chief Auditor.
(2) the internal audit of the Bulgarian National Bank shall be carried out in accordance with international standards for the professional practice of internal auditing, the code of ethics of Internal Auditors, the rules of the Committee, the internal auditors to the European system of central banks and adopted by the Management Board of the Bulgarian National Bank rules for the activity.
(3) the purposes, powers, responsibilities, plan and the report on the activities of the internal audit of the Bulgarian National Bank shall be adopted by the Management Board.
(4) The auditor and the Auditor in the internal audit unit shall meet the following requirements:
1. be legally capable persons;
2. not to have been convicted of a deliberate crime and should not have been denied to the courts of the right to hold office;
3. to have completed tertiary education and acquired educational qualification degree "master";
4. to hold an "internal auditor in the public sector", issued by the Minister of finance, and/or internationally recognized certificate in the field of auditing and accounting. "
2. In the additional provisions § 1 (b) shall be established:
"§ 1 (b)." Internationally recognized certificate in the field of auditing and accounting are "certificates" certified internal auditor (CIA-Certified Internal Auditor), "Certified Financial Services Auditor (Certified Financial Services Auditor – CFSA) awarded by the Institute of Internal Auditors (Institute of internal auditors) – international professional organization of Internal Auditors; "Certified Information Systems Auditor (Information Systems Sertified Auditor-CISA) issued by the Association audit and control of information systems (Information System Audit and Control Association); "Certified public accountant" (Certified Public Accountant-CPA), issued by the Association of certified public accountants (The Association of Chartered Certified Accountants); "Certified Financial Analyst (CFA-Chartered Financial Analyst), issued by the Institute of chartered financial analysts (Certified Financial Analyst Institute); "A certified expert on fraud detection" (Certified Fraud Examiner), issued by the Association of certified experts in fraud detection (Association of Certified Fraud Examiners). "
§ 36. Article 35, paragraph 1, concerning art. 22, para. 4 shall enter into force from 1 April 2017.