The Croatian public sector established the Public Internal Financial Control system to ensure legal, effective and efficient use of government funds. The system is divided into two main components: financial management and control and internal audit. The purpose behind the introduction of financial management and control shall be the improvement of financial management and decision-making for the purpose of achieving general objectives budgetary and other funds will be executed in an orderly, ethical, economical, effective and efficient manner. It shall imply the compliance with laws and other regulations, safeguarding resources against loss, misuse and damage, strengthening of the responsibility for a successful fulfilment of tasks and timely financial reporting and monitoring of the operations’ results. Unlike financial management and control, which mainly relates to control and monitoring of financial resources, internal audit refers to activities closely related to monitoring and continuous improvement of the overall business. As a result, the role of internal auditors changes and grows daily, and expectations are increasing. This graduate thesis is intended to describe and elaborate the public internal financial control system as well as financial audits, with the main aim of gaining insight into the extent of their implementation in the Republic of Croatia and determining the developing potential of the system. The topic of the public internal financial control system was investigated on the example of the firm Pula parking d.o.o. Pula with the aim to gain insight into the success of the implementation of internal controls and influence on the business of the company.