Research On Performance Evaluation Of Internal Audit Projects Based On DEA

With the development of social economy and the constant expansion of enterprise scale,control structure and ownership structure of enterprise have become more complicated.Enterprise stakeholders,especially external investors,are paying more attention to risk management ability,internal control system implementation,and governance supervision than in the past.Modern enterprises are facing more pressure than ever and it has become increasingly important to minimize risks and strengthen internal control management systems.Internal audits play an important and often decisive role in enterprise control systems and running a high quality audit monitoring system can help enterprise management systems stay complete and orderly.The purpose of this paper is to provide new ideas and perspectives for internal audit project performance evaluation.Introducing DEA model,combining mathematical algorithm with performance evaluation,basing on practical experience in work,this paper analyses the shortcomings of current performance evaluation methods.The intention is to establish a performance appraisal system that is closely linked to cost and stakeholder value drive by proposing a faster and more efficient internal audit project performance appraisal method.This new method should be based on a practical to construct assessment index system that links audit results to input,which helps define the relationship between input and output.It should also maximize the effectiveness of the cost role on the audit project,making clear the main assessment indicators according to different aspects.Meanwhile,to provide guidance for audit improvement,quantifying subjective and objective indicators based on full consideration of various situations and comprehensive evaluation of audit projects to provide first-hand information to Improve auditing standards and to provide materials for the assessment of the audit proj ect leaders.Depending on the theoretical advantages of DEA model,using DEA-BCC model,we choose output-oriented implementation.According to the application method and steps of DEA model,we construct the input-output index system according to the basic principles of performance evaluation objectives and index system.Referring to different aspects of audit focus,we select the most appropriate evaluation index to provide guidance for the improvement of audit work and quantify the subjective and the customer and Observing indicators.Fully considering various situations,comprehensive evaluation of audit projects,improve the standardization of audit to provide first-hand information,and provide materials for the assessment of audit project managers.Through the construction of the theoretical system and the actual operation of the audit project,and the analysis of the results,the whole process of modeling,im plementation and evaluation is realized,which embodies the practical role of DEA model in the performance evaluation of internal audit project,and determines that DEA model is suitable for the performance evaluation of internal audit project.According to the basic application method of DEA model,internal audit is gradually summarized and concluded.The basic procedures of performance evaluation application,combined with practical examples,study the analysis method of calculation results,the whole process of implementation of DEA model can bring management improvement to the management of enterprise audit department.