Rulebook on Internal Structure internal structure and, management, expert collegiate body, work programming and planning, auditing and reporting, official secrecy/confidentiality, work relations and transparency of Audit Office operations.

Internal structure of the Office was established in order to provide rational work organization and efficient managing and carrying out of tasks, execution of determined policy and regular and complete application of law and other regulations, as well as ensuring of adequate cooperation with other BiH institutions.

Internal Structure Rulebook is regulates internal structure of the Office, managing, expert collegiate body, programming and planning of work, performing of auditand reporting, official secrecy, employement relations and transparency of work of Audit Office.

The following organizational units shall perform tasks within the competency of Audit Office:

• Cabinet of Auditor-General and Deputies Auditor-General
• Sector for Auditing (group of clients 1)
• Sector for Auditing (group of clients II)
• Legal and Department

Audit teams, consisting of one audit manager (senior auditor) and two audit assistants (assistant auditors) will carry out audit work. Audit managers are direct managers and executors of audit operations and tasks. Audit Office administration lays within the responsibility of Legal Department.

Management

Based on Article 6, paragraph 2, and Article 7, paragraph 2 of the Audit Law and Article 5, item 3 (d) of the Constitution of Bosnia and Herzegovina, Presidency of Bosnia and Herzegovina has appointed Ivan Miletiæ as Auditor General, and Dragan Kulina and Samir Mušoviæ as Deputies of Auditor General of the financial operations of the institutions of Bosnia and Herzegovina on 17^th of May 2000.

Auditing

External audit presents an independent review of any financial transactions, financial statements or operations of audited subject as well as reporting on findings.

Government audit is usually divided into three types:

1. Audit of financial statements (annual accounts) includes auditing and giving opinions over financial statements: balance sheet, income statement, cash flow statement and other reports determined by regulations.

The objective of this kind of audit is to determine whether financial statements have been prepared in accordance with the law, generally accepted standards and iving opinions on their reliability.

2. Compliance audit (compliance with the law) is directed to auditing of the state financial transactions to ensure their proper recording and respect of legal obligations.

3. Performance audit (value-for-money) is focused on operations of organization in terms of economy, efficiency and effectiveness.

Types of audits that will be carried out by Audit Office depend upon law regulations.

Auditing of BiH institutions

Audit Law, Article 13 defines that Auditor-General carries out annual audit of public accounts which include all ministries, offices, courts and government bodies, public funds, companies, that are partly or completely owned, controlled or financed from the BiH budget.

Paragraph 4 of the same Article defines the type of audit performed by BiH Audit Office.

Those are audit of financial statement and performance audit.

In the first phase of auditing, the Audit Office will be focused on auditing of financial statements with additional elements of compliance audit.

This phase will include all clients with the highest risk indexes that will be determined through risk analysis method which direct the auditing to those areas where funds are the biggest and where there is a possibility of loss is bigger.

This approach is in accordance with provisions of Article 13 paragraph 6 of the Audit Law.

Reporting

Audit Law in its Article 13 Paragraph 5 defines that the Auditor-General submits an audit report of annual accounts to the Presidency of BiH and to the Parliamentary Assembly.

Besides this, Auditor-General is obligated to prepare a report on operations of the Audit Office every year and to submit it to the Parliamentary Assembly by 31^st of March.