Collecting Performance Data Synopsis Measuring quality performance in internal auditing requires a framework that balances all the measures needed across a wide spectrum of activities. Developing such a framework and appropriate key performance measures can be a cutting edge process.

This problem was published in ASK THE EXPERTS, Internal Auditor, October 2006. Copyright 2006 by The Institute of Internal Auditors, Inc., 247 Maitland Avenue, Altamonte Springs, Florida 32710-4201, USA. Reprinted with permission.

After Reading the Case Study Consider:

1. What quality issues do you see for Carlton to solve?

2. What ‘key performance indicators’ should Carlton consider for his balanced scorecard strategy?

3. How can Carlton use the new key performance indicators to achieve his mission to implement a ‘   formal quality assurance and improvement programme within the department’?

• Issue of a quality statement by internal audit.
• Clear understanding of audit objectives between auditor and auditee.
• Supervisory reviews of audit working papers.
• Use of quality teams to focus on activities that need to be improved.
• Training of internal audit staff in techniques for quality improvement.
• Use of quality measures.
• Reviews of selected audit work by internal audit staff independent of audit.
• Reviews of selected audit work by staff outside of the internal audit department.
• Use of internal audit standards/code of ethics/statements of responsibilities.
• Use of any other quality management standards, laws, regulations as a benchmark.