INTERNAL CONTROLS IN THE PUBLIC SECTOR IN THE LIGHT OF THE COSO FRAMEWORK: THE CASE OF THE PURCHASE DEPARTAMENT OF THE BRAZILIAN NAVY

Abstract

In the search for better performance standards in the public sector, the Brazilian Court of Auditors (Tribunal de Contas da União) has proposed a model for internal control evaluation that is quite similar to the integrated internal control framework developed by the Committe of Sponsoring Organizations of the Treadway Commission (COSO report), which is the reference adopted in the private sector for internal control. The aim of this study is to evaluate  the level of theoretical and practical harmonization of internal control procedures appointed as indispensable in the literature about COSO I and the internalcontrol procedures adopted by the Purchase Department of  the Brazilian Navy. It was undertaken an exploratory s research, with qualitative approach, that used the case study as methodological procedure.  Besides documental research, data was collected through semi-structured interviews and questionnaires. Results indicated that, in what concerns theoretical harmonization, the documents analyzed approach the “control environmental” and “control procedure” conceptual dimensions of COSO I , although in a superficial way. In the practical harmonization analysis, it was identified a great valorization of aspects related to integrity and to ethical values, as preconized in the model. On the hand, there were also observed many divergences in the five dimensions of the internal control structure of COSO I. The differences identified reinforce the need to analyze the applicability of reference models in the organizational context, observing its particularities and specificities.