Research On A Comprehensive Evaluation System Of Internal Audit's Performance

With the trend of economic globalization and integration, business environment is facing great uncertainty and business management come into the strategic management times. Internal Audit plays an increasingly important role in the organization as to ensure accountability and effective performance of the internal control mechanism. Meanwhile, the evaluation of the focus of corporate management has been putting forward new requirements to Internal Audit. Adding value becomes a critical task to internal audit which is related to its development in the enterprise since Internal Audit changed from a "cost centers" into a "profit center". So, how to measure the added value? And what performance indicators will be helpful to add value? The internal audit performance evaluation system established based on the traditional role of internal audit is not effective. The evaluation system present can not effectively guide the work of the internal audit department and keep it be consistent with the overall strategy of the organization.This article reviews the theory about performance evaluation and documents on internal audit performance evaluation. Then think on the approaches to achieve adding value for internal audit and analyze the factors which impact internal audit performance, based on the function of internal audit.In the following, this article describes the basic content of Balance Scorecard and Performance Prism and the advantages and disadvantages respectively. A comprehensive evaluation system is been established which combine BSC and Performance Prism after analyzing the feasibility of a combination. This system tries to evaluate the performance from dimensions of stakeholder satisfaction, stakeholder contribution, the internal audit strategy, internal audit internal processes, learning and growth. Then this article describes evaluation indexes in each dimension basing on the GAIN with four indicators from external auditors.Finally, AHP is introduced and applied in the performance evaluation.