Research On Performance Measurement For Internal Audit Based On Process Efficiency And Risk Oriented

The degree of opening to the outside world nowadays increases day by day, the socialeconomy and the rapid of development of science and technology, and the enterprisemarket competition is fiercely increasing. Under the influence of internal and externalenvironment, the difficulty of the management and survival and development ofEnterprises is more and more serious. Internal audit department as a management serviceorganization of functional departments, in this increasingly competitive environment, theinternal audit department is playing an increasingly important role, to achieve the strategicgoals of the enterprise plays a vital role. As a result, the internal audit department alsobecomes more and more get the attention of the organization. Internal audit department canthrough the systematic and standardized method to help supervise enterprise financialmanagement status, control enterprise risk, reduce enterprise cost, improve the corporategovernance procedures, and so on, to encourage enterprises to achieve its strategic goals.Only as a healthy and effective internal audit department, it can achieve the purpose ofserving the organization. Otherwise, the internal audit department will becounterproductive to an organization, even lead to the decline of an enterprise. Therefore,carrying on the reasonable and effective performance evaluation to the internal auditdepartment, it can incentive for the organization to provide value-added services. Currently,setting up an internal audit performance evaluation index system is more mature in westerndeveloped countries, and it has been maturely used. While still in the stage of theoreticalresearch, our country has not formed a set of mature and effective internal auditperformance evaluation index system suitable for China’s national conditions. Based on theexisting internal audit performance evaluation index system at home and abroad,this papermakes some research and introduction, analyses and evaluates the advantages andshortcomings of the existing performance appraisal index system, summaries the existingtheory, further studies on it.This article first introduces the research background and significance of performanceevaluation of internal audit, internal audit performance index system and the current situation of internal audit performance evaluation methods and the performance of internalaudit industry outstanding characteristics analyzed the present situation, introduced theresearch methods used. Based on this, this paper introduces the connotation and thetraditional internal audit performance of internal audit performance evaluation model andits application in our country, and combining with the current actual situation in ourcountry for its advantages and disadvantages, then analysis the process efficiency and thefeasibility of risk-oriented internal audit under the Angle of performance appraisal, andfurther put forward based on process efficiency and risk oriented internal auditperformance evaluation index system. Improve process efficiency and control risk concept,can make the internal audit department to better focus on risk and make the internal auditdepartment organization’s concern and attention, better provide the implementation for theenterprise strategic objectives and add value service. This article around the improveprocess efficiency and target to reduce risk, combined with the special functions of internalaudit department service and work characteristics, the evaluation index system is designedto process quality and process efficiency and audit effectiveness from three dimensions,established the corresponding evaluation indices for each dimension, and make use of thesite survey to the Shandong province tobacco enterprise data validation analysis,summarizes the conclusion and put forward constructive opinions and Suggestions.Finally, the implementation of the performance evaluation of internal auditdepartment is composed of many important link: including the state strategic goals;Logical framework and index system; confirming and communication; feedback andcorrection. Only by effectively implement, internal audit performance evaluation can reallyplay a role.