Internal audit can help that the organization can ensure timely compliance with the law and regulations. Auditing provides a degree of security and helps manage risk arising from fraud, abuse of power or any other scenario. The internal auditor provides management with an objective assessment of processes and computers. Management can improve its operational and financial results by using the services of an internal auditor. The paper analyzes the report of the internal audit of the company Kraš d.d. In the company Kraš, the financial statements are prepared in accordance with the IFRS adopted by the European Union (IFRS EU) and therefore the financial statements of the Group are in accordance with Article 4 of Regulation (EU) on international accounting standards. The financial statements are prepared according to the historical cost principle, with the exception of the revaluation of certain real estate, which is stated at the value of that financial asset, which is stated at the revalued amounts, as explained in the following accounting policies.