Key Performance Indicators for Internal Audit Function

July 2020

“What gets measured gets done!” is a favorite saying in many management textbooks. There is much evidence to support this saying and good reasons to assume that it can be applied to the work of internal auditors. Demonstrating and measuring the value of public sector internal audit was a priority area in the IACOP 2018 – 2019 Action Plan. Good practices were identified through an extensive collaborative process, involving practitioners and policymakers from PEMPAL member countries and other partners.

In October 2019, PEMPAL issued guidance for internal audit on demonstrating and measuring added value focused on how to demonstrate the value added by internal audit in the public sector in the particular circumstances that exist in different PEMPAL member countries; and how to measure the added value of internal audit work in the public sector in terms of “value for money” (economy, efficiency, and effectiveness).

This paper builds on the 2019 guidance by providing more detail on key performance indicators (KPIs) that can support internal audit in measuring its performance.