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INTRODUCTION
Internal auditing has evolved considerably since the Institute of Internal Auditors (IIA) was established in the United States in 1941. It is nowadays a fully fledged profession, with auditing standards, a code of ethics and an international certification program. Internationally, the number of internal auditors has continued to grow; they now enjoy greater recognition and much better compensation and working conditions than previously (Courtemanche, 1991). Internal auditing is now positioned to offer a greater variety of services, and to command greater respect within a company.
The concept of the internal audit, and recognition of its importance, were realized late in Romania (1999), but this should be seen within the context of the communist regime, which was dominant until 1989. Romania's transition to a stable market economy in the 1990s was difficult, marked at the beginning of this period by the bankruptcies of some monolithic organizations, particularly in the banking sector. These difficulties were exacerbated by the inconsistent political strategies used in governing an unstable national economy.
Gradually, though, the Romanian economy has become more stable. At the same time, Romanian managers have increasingly been looking for solutions that can improve their organizations' performance. If we compare the evolution of internal auditing in Romania with its development internationally, there are some noticeable differences, explained - at least partly - by the specific characteristics of the Romanian economic environment and culture.
Internationally, internal auditing developed in the large private companies and multinational enterprises, and then extended into the public sector. In Romania, it evolved in the opposite direction: initially, its importance was recognized in the public sector, with systems of regulations and laws adopted for internal auditing coordination. It then spread into the private sector, as interest grew in investment in the Romanian economy, and as the number of multinational enterprises in Romania increased.
RESEARCH METHODOLOGY
Our research combined quantitative and qualitative approaches. Our aim was to analyze the evolution of internal auditing in Romania, and to compare it with the international context, emphasizing the specifically Romanian characteristics that influence internal auditing, and what actions are needed for it to develop. Our findings are based on: (a) an analysis of case studies regarding the professional organization of internal auditing in Romania; and (b) empirical evidence...