Evaluating the Performance of the Internal Audit Function through Innovative Methods : A Case Study

Abstract

This article offers a new perspective on evaluating the performance of the internal audit function to meet the expectations of modern organizations. Once perceived merely as a compliance guardian, internal audit now plays a crucial strategic role in governance and risk management. To facilitate a more relevant evaluation, the article presents an innovative approach structured around 23 dimensions grouped into nine categories, providing a comprehensive and balanced view.

The study's findings highlight strengths, such as the competencies of internal auditors, while also revealing weaknesses, particularly in the use of technology and adherence to standards. The developed methodology, which combines quantitative and qualitative measures, enables a precise diagnosis of strengths and areas for improvement.

The article proposes concrete recommendations to optimize the internal audit function: effective resource management, investment in modern technological tools, and enhancement of ongoing team training. By emphasizing the importance of prevention, these suggestions aim to anticipate challenges and transform internal audit into a performance lever.

However, the study acknowledges its limitations by relying on a single organization, which restricts the generalization of conclusions. The integration of advanced technologies, such as artificial intelligence, could further enrich the evaluation in the future. In summary, this article encourages organizations to adopt a comprehensive and proactive approach to enhance the internal audit function in a constantly evolving environment.

Keywords:  Performance evaluation, Internal audit, risk management, corporate governance,

JEL Classification: M42
Paper type: Empirical Research