Auditing for Performance Evaluation.

Key Points

• The study aims to evaluate how internal auditing functions as a limited economic resource for performance evaluation.
• Modeling the internal audit function
• Assessing its use in providing incentives
• Comparing scenarios where internal auditing is utilized and not utilized for performance evaluation
• Internal audit functions are shown to be a scarce economic resource.
• When used effectively, internal audits enhance performance evaluation.
• Contrary use or neglect limits their potential benefits in providing incentives.