8. Digitalization as a Measure of Improving Financial Management and Controls

This paper examines the importance of the system of internal financial controls in the Republic of Srpska public sector, with a special emphasis on financial management and control (FMC) and the degree of its digitization. The research problem is posed by the question: Has digitalization of financial management and control improved the system of financial management and control in the public sector of the Republic of Srpska. The basic hypothesis of the work is defined by the following statement: Digitization of financial management and control is not applicable in the public sector at this stage of establishing the FMC. After the research, we will reject, partially confirm or fully confirm the basic hypothesis of the work. In the first part of the paper, we analyze the concept of financial management and control and the importance of the system of internal financial controls. In the continuation of the work, we deal with the digitization of the public sector, while in the research results section, we present the findings that we obtained after the research analysis. The considerations that we give through the conclusion of the paper will give us an answer to the set research problem and confirm or deny the truth of the set hypothesis.