In relation to your question, I just want to share an experience I had. Some years ago I worked for an organization conducting operation audits among a group of factories. Corrective action resulting from the findings were evaluated monetarily. The organization prominently displayed the results, which showed steady year-to-year increases. However, we had a change in management at the top, and when this trend was displayed, it was interpreted as an ineffective program. In other words, less is better.
 
Bob Escutia
-----Original Message-----
From: Sharon Haapala [mailto:[EMAIL PROTECTED]]
Sent: Friday, April 05, 2002 8:12 AM
To: [EMAIL PROTECTED]
Subject: Re: Internal Audit key performance indicators

At 01:45 PM 4/5/02 +0200, you wrote:
My Boss who is the CEO would like me to come up with key performance
indicators against which h would measure my performance.

In my proposed indicators l have included such things as no
of reports, recommendations implemented, budget performance, achieving set
plan etc. This to him is not sufficient and he wants me to include such
things as No. of frauds unravelled compared to previous years in dollars and
quantity terms, reported against those determined by audit, etc. Can you
suggest more indicators for me please.

I'd be very interested in hearing more ideas in this area.  Some of the indicators mentioned above make me a bit nervous.  I'm a university auditor, and some years I may not complete as many audits as other years, simply due to the nature of the audits - how long they take, complicated issues that might arise.  Similarly, I don't find fraud every year - we're a small university that has excellent internal controls and audit trails.  If I had fewer audit reports issued and no frauds, would that mean I'm doing poorly?

Just food for thought - please share any info you receive.
Sharon

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Sharon J. Haapala, CIA, Auditor
Internal Audit Department          
Michigan Technological University    
906-487-1994
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