Refocusing public internal financial control

Public internal financial control (PIFC) was introduced by the European Commission to help public sector organisations align their financial management and control systems with the principles of sound financial management. This paper reviews the state of internal control and internal audit in EU candidate countries and potential candidates, identifying achievements, challenges and options for further development. While the core elements of PIFC have supported convergence with EU good practices and international standards, implementation often remains focused on compliance rather than results. The paper proposes measures to strengthen internal control and enhance the effectiveness of internal audit.