State audit has been present for many years and has changed and evolved over the years with political changes and development of countries. It is a form of external oversight that examines whether public resources are being used economically, efficiently and effectively and financial transactions are in line with applicable law. It can be conducted as a financial audit, performance audit or compliance audit. The implementation of the state audit indicates possible deviations from the established criteria and contributes to more transparent operation of the audited entity. The independence and effectiveness of state audit is regulated by standards adopted by the International Organization of Supreme Audit Institutions (INTOSAI). The state audit is conducted by the supreme audit institutions in the name and on behalf of the state. The organizational structure of a supreme audit institution varies from country to country and may be established as a court of audit with or without judical powers, a collegial body headed by a college without judical powers or as a monocratic office managed by the chief state auditor without judical powers. After the completion of the audit process, the supreme audit institution is obliged to inform the competent authorities, the audited entity and the public about the audit findings. The source of most supreme audit institutions is the state budged and to a lesser extent own funds raised through participation in international projects and programs. The supreme audit institution of Republic of Croatia is State Audit Office which is a monocratic office headed by the chief state auditor without judical powers and is independent and autonomous in its work. The Bundesrechnungsof is the supreme audit institution of Republic of Germany established as a collegial body without judical powers and is also independent in its work.