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Abstract
Defining performance indicators for all internal audit activities is a complex
process to highlight the quality of this set of activities. Quality however is not a
performance indicator or an additional property added to it, but it belongs intrinsically to
the set as a result of the basic solution components properties. This article aims to add to
the literature a new set of quantitative and qualitative indicators and also an aggregate
indicator characterizing the degree of performance and the practical utility of such
analytical tools will be the subject of future research.
Keywords: performance, qualitative indicators, quantitative indicators,
internal audit
JEL Classification: M410
Introduction
Evaluating the structure of public internal audit would be recommended to be
approached from at least three perspectives:
the management or authorising officer;
the internal audit structure ensuring the conduct of public internal audit
targeting both the value, cost and quality;
the final beneficiary, namely the citizen, who will consider in the first place
the quality of services provided by the public institution.
The optimal allocation of all categories of resources (human, technical, financial)
based on both the needs of the internal audit structure and the possibilities of the public
institution at a certain time, requires quantifying the quality of the internal audit activity at
control system level, both by qualitative and quantitative analysis indicators.
The system of indicators may vary from one type of organizational structure to
another but always defines the relationship between entering resources (inputs) and what
the organizational structure of public internal audit performs by using these resources
(outputs).
In the category of qualitative analysis indicators we enumerate:
the satisfaction level of the final user or the degree of assurance given to
citizens,
the acceptance of the results by the Head of the public institution,
the degree of achievement of planned objectives,
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the speed reaction of the users from the moment of the provision of
information audit,
the effectiveness of the internal audit activity and of internal audit structure,
the accuracy of audit information.
Figure no. 1.
Perspectives in evaluating public internal audit
Internal audit
structure
Citizens
Management of the
public entity
values, are used both by management structures for analyzing the audit activity and within
auditing activities carried out by the Court of Accounts.
Proposals of effectiveness indicators:
1) indicators of satisfaction of the users of information audit
citizen satisfaction degree in relation to the quality of services provided by the
audited public institution,
the satisfaction of the head of the public institution related to the quality of the
auditing information requested,
the average waiting time to implement audit recommendations,
the proportion of implemented recommendations in relation to
recommendations unimplemented by the public institution management .
2) indicators of use related to the availability
Conclusion
The evaluation of the conduct of internal audit activities within an entity can be
made for example through the combined use of indicators of quantitative analysis with
qualitative analysis indicators. In this way quality means competitiveness and efficiency
for both the auditor and the beneficiary/user (management team or citizens) and can
express the degree of quality in meeting the objectives of internal audit activities or the
degree of quality of the objectives achieved by the public entity. Analyzed as a synthetic
indicator it means both determining the competitiveness of the system characterized by
these activities compared with similar systems and the efficiency of such activity in the
control system analyzed. In these circumstances it results that based on the indicators of
quantitative and qualitative analysis can be defined a synthetic and quality cumulative
indicator or an indicator of evaluating the performance of economic and social system
activities represented by the public entity concerned as a whole but also by the internal
audit structure in this case.
References
Ghi M., Popescu M., (2006) Auditul intern al instituiilor publice [Internal audit of public
institutions], CECCAR Pub. House, Bucarest
Renard J., Teoria i practica auditului intern [Theory and practice of internal audit], (2002)
4th edition, European Union, project financed by Phare and Ministry of Public
Finnance,
www.auditnet.org