Legal aspects of the Supreme Audit Institutions in the Baltic Sea Region

Abstract

The legal regulation of the public sector auditing among the Supreme Audit Institutions (SAI) of the Northern and Central-European countries holds the potential to offer new perspectives on the functioning and independence of these public audit institutions. This paper aims to examine the external audit practice among the Baltic Sea Region countries as it is defined in the laws and legal acts aimed at the functioning of the particular institution. The task was carried out by conducting an analysis of the legal regulation of the corresponding supreme audit institutions. Overall, SAIs in the Baltic Sea Region closely cooperate with the Parliaments in the reporting phase. Meanwhile, most of them are closely integrated with the legislative power during the phase of the appointment of the head of the audit institution as well as during the budgeting phase and later on during the reporting phase. The research shows that among the Baltic Sea Region countries the Supreme Audit Institutions pursue audits in diverse range of fields as stipulated in the legal regulations. The paper also indicates a space for further research in the field of the SAI legal regulation, audit merit and further interrelation with the executive and legislative powers as well as the impact of such cooperation on the functioning of the accountability system in the particular country.