THE EFFECT OF BALANCED SCORECARD IMPLEMENTATION ON INTERNAL AUDIT EFFECTIVENESS AND PERFORMANCE EVALUATION: A STUDY AT PT BANK RAKYAT INDONESIA - KEDIRI CITY BRANCH

Abstract

The purpose of this study was to evaluate the impact of Balanced Scorecard (BSC) implementation on internal audit effectiveness and performance appraisal at PT Bank Rakyat Indonesia KC Kediri. A quantitative approach was used using path analysis through Structural Equation Modelling (SEM) based on Partial Least Squares (PLS). Data were collected through a questionnaire survey with employees and management. The convergent validity test results show that all indicators have satisfactory validity and reliability. The research findings show that BSC implementation and performance indicators have a positive effect on organizational performance appraisal, with the internal audit function as a moderating variable that strengthens the relationship between these variables. The study concludes that the integration of BSC in the internal audit system can improve accountability and transparency, and support more proactive and sustainability-oriented decision-making. The results of this study provide valuable insights for public organizations in implementing a more comprehensive performance measurement system.