MEASURING PERFORMANCE OF INTERNAL AUDIT: A EMPIRICAL STUDY

Abstract

This research investigated how the internal audit departments in Brazil measured performance. As a starting point it questions how internal auditors measure performance. The study is descriptive and data were gathered through a structured questionnaire given to thirty internal audit managers. Data analysis applied factor analysis with the assistance of SPSS. The theoretical perspective evidenced the existence of information asymmetry between auditing department and top management comprising: audit committee and administrative board, since a large number of respondents do not undergo any periodic evaluation of their work by an independent body. The empirical application shows that the implementation of control over the measurement of results in the Internal Audit departments borrows a leaf from a set of procedures that require parameterization for its effectiveness, and monitoring of value delivery and investment analysis in order to match the quality of internal and external work performed. Finally, in general, a significant portion of managers consulted performed controls regarding impactful values involving the audit department comprising financial savings, and resource optimization, also points to the existence of controls on the recommendations for improvement, feedback from management , internal planning and execution of the work even though our research did not reveal how these controls are worked.