Internal audit function evaluation by external auditors: An application in belief functions approach in Turkey

Purpose of this study is to investigate, how the internal audit function should be evaluated by external auditors. Internal audit function evaluation by external auditors is an important part of the audit process which is the determination of control risk. Evaluation of the internal audit function as a whole will directly affect the external auditors’ study’s scopes and durations. In this first part of the study, the U.S.A. researchs and regulations were examined.In the second part of the study, studies in the auditing literature which are related to evaluation techniques of the internal audit function risk wereexamined.In the third chapter of the study, Dempster-Shafer theory belief functions’ mathematical structure was represented briefly.In the framework of belief functions, an internal audit function evaluation method will be explained structurallyin the fourth chapter of the study. In the fifth section of the study, an experimental application of this model on the internal audit department of a company which located in Turkey was conducted.In the last section of the study, discussion issues which belong to the results of this application were discussed.