EIRP Proceedings, Vol 15, No 1 (2020)

Abstract

The motivation of studying the ways in which the internal audit activity can be improved as well as the impact that this activity has on the decisions of the entity is justified by the complexity of the internal audit field as well as its rapid development. The evaluation of the efficiency and effectiveness of the internal audit function is an important objective of the entity's management, and it must be carried out annually in order to make this function more efficient and to determine the cost-benefit ratio. Analyzing the effective ways of evaluating the performance of the internal audit presented in the specialized literature, two methodological approaches of evaluating the performance of the internal audit were identified: a traditional approach through the structure, quantitative and qualitative indicators, and an approach by the Balanced Scorecard (BS) method, the latter being used in the presented study.