Elevating Financial Audit Practices in the Airline Industry: A KPI-Driven Framework for Enhanced Oversight and Performance

This study explores the integration of Key Performance Indicators (KPIs) within the financial audit functions of the airline industry, aiming to enhance audit effectiveness, efficiency, risk management, and compliance. Through a mixed-methods research approach, combining qualitative insights from Financial Audit Directors (FADs) with quantitative analysis of audit outcomes, the research develops a comprehensive framework of KPIs tailored for the airline sector. Findings underscore the transformative potential of a KPI-driven approach in streamlining audit processes, improving risk management practices, ensuring stringent compliance, and aligning audit activities with broader organizational objectives. The study contributes to the existing body of knowledge by offering a novel perspective on the strategic integration of performance measurement tools in auditing and provides actionable recommendations for FADs to implement and leverage KPIs effectively. This research not only addresses a notable gap in the literature regarding performance measurement in financial auditing but also presents a strategic roadmap for enhancing the strategic value and impact of audit functions within the dynamic landscape of the airline industry. The implications of this study are significant for practitioners, offering insights into adopting a strategic, KPI-driven approach to elevate the role of financial audits in supporting organizational success and resilience.