ROLE AND IMPORTANCE OF THE AUDIT OF OPERATIONS IN PRIVATE AND PUBLIC SECTOR

Considering that in theory andpractice, there are three types of audits (audits offinancial statements, audit of operations and auditreview of compliance with the rules andregulations), this paper focuses on the definition ofaudit operations, which the Republic of Srpska andthe Federation of Bosnia and Herzegovina have notenough researched and presented to the public.Since the review of operations represents the typeof audit that examines the organizational unit forevaluating the success of its operations, the focus ison determining the economy, efficiency andeffectiveness (the concept of "3E"), pursuant towhich the auditor becomes aware that the observedorganizational unit operated in a given time period.In this regard, the audit of operations can beobserved in the private and public sector, which isthe focus of research in this paper. In addition, thispaper particularly explains the characteristics andthe nature and methods of audit of operations. Theprimary objective of this paper is the evaluationand improvement of economy, efficiency andeffectiveness in the private and public sectors,through operations audit approach.