Analysis On Internal Audit Appreciation Evaluation System Based On The Balanced Scorecard

in recent years, We are supposed to considerate and discuss enterprises management inorder to get rid of the risks. Internal audit, as an important method of business managing, isbecoming more and more significant. In practical operations, the managers are in sore need ofinternal audit reform and improvement. The internal audit department is expected to prevent,identify and control the business risks, thus to reduce the risks and cut the losses.First of all, this paper will review the foreign and domestic research situation andposition the internal audit by utilizing the value chain analysis so as to estimate whether theinternal audit can get appreciation; by analyzing the status of internal audit in enterprisesaccording to the modern enterprise contract theory, we draw a conclusion that internal auditcan get appreciation by means of promoting enterprise management, improving internalcontrols and involving in risk management. Then we add new dimension index (externalauditor and risk management) to the original balanced score card dimension, constituting aninternal audit appreciation evaluation indexes system with six dimensions. Next, analyze theappreciation of internal audit department with the six dimension and build the internal auditappreciation evaluation indexes framework. The system contains six dimensions (secondaryindex) and24third class indexes. The weight of the index is determined by AHP and the finalevaluation result would be divided into five grades: excellent, good, medium, bad, poor. In theend, this paper will analyze the listed company D by fuzzy analytic method and estimate theappreciation condition of its internal audit on the basis of practical operations and selecteddata from Tianjin equity bourse. Then the last chapter draws the conclusion, and providesuggestions and propose forecast for further studies. The established evaluation system is theinnovation of this article.