A Study Of Establishing Departmental Performance Assessment Indicators Of Corporate Internal Audit By BSC

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Due to the inherent characteristics that the value of internal auditing can not be easily measured, how to measure and evaluate the performance of the internal audit department has became a major problem plaguing the enterprise and also a major obstacle on the development path of internal auditing in the enterprise. The Balanced Scorecard (BSC) is a multi-function management tool with evaluation system, strategic management system and communication tool. As the internal professional service organization, the strategic direction concept of the modern internal auditing is highly consistent with that of BSC. This paper, with the BSC theory, gives a description to the overall performance evaluation of the RH Co.,Ltd’s internal auditing from customer dimension, internal business process dimension, learning and growth dimension, and financial dimensions, preliminarily building a index system for performance assessment of internal audit department in the RH Co.,Ltd. Evaluation information the index system requires to obtain is from a variety of aspects, not only the information generated from the auditing activity itself, the company’s senior management’s or external evaluation, but also the evaluation from the enterprise’s internal operation and management personnel and auditing personnel. This paper is a form of discussion to improve the performance assessment method of internal audit and reform on the situation of application of balanced scorecard.This thesis is of benefit to other corporates who want to apply balanced scorecard in internal audit.