Analysis of Internal Audit Efficiency by Using the Data Development Analysis (DEA) Method and Linear Regression
Keywords:
internal audit function; efficiency; DEA strategy; linear regression; risk managementAbstract
Internal audit plays a particularly important role in supporting decisions within the entity in
the context required by the need to overcome the difficulties arising from the occurrence of different risk
factors, respectively in order to achieve the proposed objectives and improve the performance of the
entity. In the current context, it is the task of internal audit to advise management in decision-making, to
optimize the performance of activities, to identify some dysfunctions in the entity’s processes, to inform
decision-makers and to propose solutions to address identified deficiencies. In this respect, a key
objective is to focus on identifying methods and models for quantitative analysis of the effectiveness of
the internal audit function and its effects in providing added value, among them the method of DEA
(Data Development Analysis method and linear regression.
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