ОБЩА ХАРАКТЕРИСТИКА НА ОДИТА КАТО ЮРИДИЧЕСКИ КОНТРОЛ
GENERAL CHARACTERISTICS OF THE AUDIT AS LEGAL CONTROL

Summary/Abstract: The development of the audit as form of legal control is related to resolving the Principal – Agent conflict in management. In contemporary management theory, public regulation of business activity is derived from the relationship between a principal and an agent in which the latter is encouraged (through incentives and / or sanctions) to act in support of the principal's goals. Such relationships exist wherever needs of time, knowledge, or experience motivate individuals or organizations to designate others to act on their behalf, such as when employers recruit employees, legislators assign exuctive obligations to goverment bodies, or standardization organizations assign auditors to verify compliance. The need for principals to delegate to agents, who posses information (usuly not accessible to these principals) is considered to be one of the most basic dynamics in modern management. Whether these actors are linked to the public or private sector, the challenge is that the principals are trying to coerce agents to act on their behalf and in their interestThe various applications of the audit as a type of legal control determine the characteristic of its legal regulation. The audit is carried out by specialized bodies, employees and professionals whose legal status is subject to special regulation. An essential feature is the regulation of audit procedures: 1) statutory regulation and 2) international auditing standards. The audit is subject to self- regulation at different levels– i.e. the financial audit by Institute of Independent Professional Accountant, internal audit by Institute of Internal Auditors.The audit as a type of financial control involves the financial and property resources within the financial system (public finances), as well as public funds and assets. Audit is performed for the purposes of the administrative supervision over the business activity in order to control the compliance with the legal requirements established by the administrative regulation for the respective economic activity under the conditions of Art. 3, para. 3 and 4 of the Law on Restriction of Administrative Regulation and Control over Economic Activity. Audit is one of the main mechanisms of corporate governance that regulates both horizontal conflicts (between controlling and non-controlling shareholders), and vertical conflicts (between owners and management) and external conflicts (between owners and outsiders who have provided resources - employees, creditors, bondholders, local communities). The auditors contributes confidence building that markets, especially the financial markets, function optimally.

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