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Internal Audit

In accordance with the Central Bank of Montenegro Law, Internal Audit conducts ongoing and comprehensive monitoring of the Central Bank's activities in accordance with the general act of the Central Bank and the Internal Audit Charter to be passed by the Council, as well as internationally accepted standards of internal auditing.


The internal audit activities within the Central Bank are performed by a dedicated organisational unit that helps achieve the objectives of the Central Bank by applying a systematic and disciplined approach to evaluating and improving the effectiveness of governance processes, internal control systems, and risk management. This is accomplished by providing independent and reasonable assurance and adding value to the Central Bank's operations.


The purpose of internal audit is to enhance the Central Bank of Montenegro's (hereinafter: the Central Bank) ability to create, protect, and sustain value by providing the Governor of the Central Bank and the Council of the Central Bank with independent, objective, and risk-based assurance, advice, insight, and foresight.


The internal audit helps improve the Central Bank with respect to:


  • successful achievement of the Central Bank's objectives and the execution of its functions; 
  • governance processes, risk management, and internal controls;
  • decision-making within the Central Bank;
  • reputation and credibility of the Central Bank; and
  • the Central Bank's capacity to operate in the public interest.


To ensure the independence of the Internal Audit, the Chief Internal Auditor reports directly to the Governor of the Central Bank (administrative reporting line), as well as to the Audit Committee and the Council of the Central Bank (functional reporting line).


In the Annual Internal Audit Activity Report, the Chief Internal Auditor confirms to the Council of the Central Bank the organisational independence of the internal audit function.


According to the assessment by the external quality assessment team of the Dutch Central Bank (De Nederlandsche Bank) from 2023, the Internal Audit of the Central Bank of Montenegro is generally aligned with the International Professional Practices Framework (IPPF) and the Code of Ethics of the Institute of Internal Auditors (IIA).


Internal Audit Charter