Audit and prevention in the jurisprudence of the Italian Court of Auditors

This contribution aims at delving into the ways in which the Italian Court of Auditors avoids the risk of irregularities that may affect the economic performance of budgets approved by local authorities. It also aims at analysing the role of the Italian Court of Auditors in addressing the non-compliance with parameters of financial legality. These objectives will be reached through an analysis of current Italian legislation and its interpretation by the Italian Court of Auditors. First of all, this contribution will propose an expansion of the concept of jurisprudence of the Italian Court of Auditors, which also includes the deliberations of the regional audit departments of the abovementioned Court. In particular, it will be argued that these decisions are the result of the integration of judicial and audit activities and, a positive view will be taken towards the possibility of a substantial assimilation with judicial measures. Secondly, this contribution will build upon legislative texts and decisions enacted by the Italian Court of Auditors in order to establish the rules governing the audit activity on the financial management of local authorities, which is undertaken by the regional sections of the abovementioned Court. In particular, this contribution will focus on the rules aimed at avoiding or mitigating the risk of failure to reach a balanced budget. Moreover, this contribution will examine the sanctioning activity of the Italian Court of Auditors, which is addressed both to local authorities and their administrators. This sanctioning activity is aimed at preventing specific risks, which undermine the financial stability of local authorities. In conclusion, this contribution will argue that the Italian Court of Auditors has an effective set of tools to prevent risks and deal with emergencies related to the accountancy of local authorities and will call upon the legislators to intervene in an area of accounting law dominated by the interpretative choices of the abovementioned Court.