The thesis deals with the research and analysis of the specificity of the state budget audit of the state budget beneficiary in the Republic of Croatia, as well as the importance of applying the International Auditing Standards by the supreme audit institutions. For this reason, a very important part of this paper will be devoted to examining and analyzing the possibilities of applying the International Standards on Auditing in the implementation of the state audit and determining the similarity and differences in the application when it comes to state audit in relation to commercial auditing. Therefore, the selected standards will determine what are the specific areas where there is a difference in the public sector. The aim of the paper is to explain the terms of the state audit and the work of the State Audit Office on the example of the beneficiary of the state budget. The Ministry of Justice is one of the many beneficiaries of the state budget, and therefore their financial statements are subject to a revision exercise conducted by the State Audit Office as the supreme audit institution of the Republic of Croatia. The paper reviews the reports on audits carried out at the Ministry of Justice for the period from 2015 to 2017. Audit Reports will analyze the subject and purpose of the financial audit, the methods and procedures used, and the auditor's recommendations. State Audit plays a major role since it points to the correctness and the real state of the financial statements of the budget users and to the irregularities and illegalities detected in the business. In the analyzed case of the Ministry of Justice, the State Audit Office has expressed a qualified opinion for 2015 and 2016, and by 2017 unqualified. Audits include financial statements and operations. The role and importance of the internal audit of the Ministry of Justice will also be studied on the basis of the Strategic Internal Audit Plan for the period 2018-2020.