HY Ltd., a growing manufacturing company, initiated a performance assessment of its Internal Audit function to evaluate its alignment with business objectives and risk management practices. During the review, the Board a

The first step in conducting assessment of the Internal Audit function involves reviewing the management's expectations and achievements. This may also include remediation measures for better results, if necessary, and should be reported to the board/audit committee. Performance measurement ensures high standards for audit strategy, execution, and reporting. It also helps organizations align their audit strategy with the overall business strategy, thereby linking the audit's performance to the organization's mission and objective. This ensures that concerned stakeholder audit needs are fulfilled. Key benchmarks of performance assessment are mentioned below: Effectiveness of audit in covering key areas; Feedback of audit findings during audit; Duration and timeliness of the audit; Accuracy of audit findings; Value of the audit recommendation; Value added by the internal audit function.