Research Papers

EU funds managed under the “shared management” system are a risky business of EU finances as the implementation, monitoring and auditing activities are shared between the European Commission and the Member States. The scope of the research is limited to a special field of shared management, the Cohesion policy, where the most likely error rate is still over five percent. On the basis of the assumption that not more audits but better coordinated ones are proved to become necessary for cost effectiveness, an analysis examines how the parts of the external audit and internal control functions could support each other’s work. The author primarily approaches the subject of the use of other auditors from the aspect of the International Standards on Auditing (ISAs). The subject of reliance on other auditor’s work raises the issue of cooperation between the European Court of Auditors and Supreme Audit Institution (or even sub-national institutions). As a prerequisite of effective mutual collaboration, the methodological convergence has to be reached undoubtedly. The potential of relying on other auditor’s work addresses two issues. The aforementioned professional point of view, based on the methodology of the European Court of Auditors, is only one aspect of feasibility. In addition to that, the subject of reliance can hardly be separated from a more political point of view: the accountability of Member States. The proposed audit of “national declarations”, issued by the Member States, opens up the question of both professional and political commitment towards audit convergence.