Quantifying Performance of Internal Audit in Public Institutions

Author:Adrian VINTILESCU BELCIUG, Ph.D. Student, Laura - Cornelia BROJBA, Ph.D. Student, Carmen GEGEA, Ph.D. Student, Daniela CREŢU, Ph.D. Student

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Keywords:internal public audit, project management, balanced scorecard

Abstract:
The balanced scorecard is a performance management framework that links strategy with day-to-day operations. Balanced scorecard provides feedback on internal processes and external outcomes in order to further improve the performance and results in terms of strategy. Adopting balanced scorecard in public institutions, along with the importance of measuring the added value generated by internal audit, especially in times of economic crisis, is calling to find a simple analysing solution regarding this field.\r\nThe purpose of this paper is to present a tabular model (using Microsoft Excel and Monte Carlo simulation) of quantitative analysis and aggregation sensitivity applied to an internal audit department (within a public institution), which may lead to measure the added value generated by this department. The model includes three worksheets but it doesn’t represent a unique solution for all public institutions. It may provide instead a practical method to determine the added value of internal audit.\r\nThe result of the study consists in a useful tool for auditors in conducting their current activities, as well as it may give an accurate image of sensitivity on added value of internal audit. \r\n

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