A Performance Measurement Framework For Internal Audit

Introduced by Kaplan and Norton in1992, the Balanced Scorecard was merely aperformance scorecard model combing financial and non-financial perspectives.However, the Balanced Scorecard performance management system is widely used byorganizations and has become a leading management framework for strategyexecution throughout the world.In the process of analyzing the performance of internal audit, the definition andmeasurement of adding value are of overriding priority. In terms of governance,stakeholders’expectation, strategy and intangible assets, the logical relationshipamong them is analyzed. Meanwhile, the study also reflects the benefit of usingbalanced scorecard. After that, the theoretical evidence is found out due to the formerstudy.Given the study of performance measurement and value of internal audit, we tosome extent change the four-perspectives of BSC. It is noted that internal customersand external customers of internal auditing are two separate perspectives. Moreover,we included the internal processes as a separate perspective and also have theinnovation and learning perspective as a fourth component. With the help of MorganStanley case, the study established a performance measures model aligned to detailedstrategic missions and the strategy map is also used in reflecting their underling causalrelationship.