The Research Of Internal Audit Performance Assessment In Changsha Tobacco Company Base On Balanced Scorecard

With the rapid increasing of improvement of corporate governance in the worldwide, internal audit will face more challenges and opportunities. The theory and practice circle have been gradually aware of the importance of internal audit. In their opinion, it is the main means to solve the problems of risk management, governance procedures and internal control, etc. They also require the internal audit to provide added value for the company by improving the company’s operation. With concern of the public, whether the internal audit department and auditors can perform their duties and how to evaluate their performance is an issue that needs to be studied in-deeply. This paper which is based on the references of domestic and overseas research achievements has made a systematic study about the performance evaluation model of the internal audit department in Changsha Tobacco Company.Firstly, this paper has illustrated the related fundamental theories and has introduced about the definition and features of performance and the distinction of assessment levels. It has extended to the internal audit department performance appraisal from department performance appraisal, which in essence examines the internal auditing department’s contribution to the enterprise. However, the issues of internal audit performance appraisal was put forward very late in our country. Besides, in the audit practice circle, there hasn’t developed a complete set of internal audit performance assessment system. Thus, this paper has introduced the BSC (balanced score card), advanced performance tool and focuses on analyzing the operation availability of BSC in internal audit performance assessment. I have found that the theory of BSC applies to internal audit department, too. The accuracy of BSC can meet the needs of the internal audit department performance assessment. Moreover, the superiority of BSC is consistence with the target of internal audit department performance assessment.Then, this paper has stated some specific situation about Changsha Tobacco Company and basic information and the related appraisal measures of its internal audit department——the Audit Division, from which I have found it is lack of a set of scientific and practical performance assessment system of internal auditing.Finally, this paper has indicated the details and criterions of the internal audit performance assessment of Changsha Tobacco Company, and the appraisal subject and design principles of the relevant indicators. According to the theory of BSC and combination with the features of internal audit and the audit division of Changsha Tobacco Company, the assessment indicator system framework is adjusted to the company management, provincial company, the audited organization and external audit dimension, financial dimension, internal audit process dimension and the learning and growth, the four dimensions. The corresponding evaluation indicator in allusion to each dimension is established and the weight of each indicator is assigned with the virtue of subjective.Then through constant communication and modification make it running more efficiently.