Module 3B Managing Resources

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• Encourages consideration of a broader range of metrics when monitoring performance. • The approach is more complex and requires greater coordination and integration of data sets as well as sufficient familiarity with the model to interpret accordingly. <strong>3B</strong>.2.2 Measuring Performance When considering the performance of an activity, project, department, or organization, we can consider different dimensions. • Inputs. These are the resources that are applied to undertaking the activity. • Outputs. These are the products and initial results of the activity. Often outputs are more tangible or immediately apparent than the subsequent outcomes and impacts. • Outcomes. These are the effects of the activity and link closely to the objectives. • Impacts. These are the longer-term consequences of the activity. The distinction between outcomes and impacts is not always made. We may consider them as short-term and long-term impacts. Inputs, outputs, outcomes, and impacts relating to internal auditing are illustrated below. When developing metrics for performance management, it is important to include measures of outcomes and impacts because these relate to the purpose of internal auditing. Inputs and 52
outputs are useful for monitoring purposes, but internal audit managers should look further than completion of the audit plan as a goal. • Inputs and outputs answer the question: what have we done? • Outcomes and impacts answer the question: what difference have we made? The following graphic illustrates possible metrics: According to the IIA Practice Guide: Measuring Internal Audit Effectiveness and Efficiency, performance measures for internal auditing may comprise both qualitative and quantitative metrics as illustrated by the following examples: • Conformance with the International Standards for the Professional Practice of Internal Auditing. • Level of contribution to the improvement of risk management, control, and governance practices. • Achievement of key goals and objectives. • Evaluation of progress against audit activity plan. • Improvement in staff productivity. • Increase in efficiency of the audit process. • Increase in number of action plans for process improvements. • Adequacy of engagement planning and supervision. 53
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Module 3B Managing Resources

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