IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v296y2021i1d10.1007_s10479-019-03307-x.html
   My bibliography  Save this article

Internal auditor selection using a TOPSIS/non-linear programming model

Author

Listed:
  • Konstantinos Petridis

    (University of Macedonia)

  • Georgios Drogalas

    (University of Macedonia)

  • Eleni Zografidou

    (University of Macedonia)

Abstract

One of the most challenging problems in personnel selection is the multi-attribute nature of the candidates. This problem is magnified during the procedure of selection of sophisticated personnel, such as internal auditors. By definition, an internal auditor must combine a selection of analytical and non-analytical skills, corresponding to specific cognitive and behavioral attributes. In this paper, a framework for internal auditors’ selection using TOPSIS technique is proposed, integrating behavioral and cognitive skills. AHP technique has been used to determine the weights of each criterion. By prioritizing the latter skills, the proposed framework can identify employable and potentially employable candidates. Besides considering the desirable skills in the process of personnel selection, the expected performance is also taken into account. To examine what would be the ideal importance of cognitive and behavioral skills that maximizes candidates’ performance, a non-linear programming method is applied. A real-life application is demonstrated to a sample of internal auditors from the Greek branch of a multi-national company.

Suggested Citation

  • Konstantinos Petridis & Georgios Drogalas & Eleni Zografidou, 2021. "Internal auditor selection using a TOPSIS/non-linear programming model," Annals of Operations Research, Springer, vol. 296(1), pages 513-539, January.
    • Handle: RePEc:spr:annopr:v:296:y:2021:i:1:d:10.1007_s10479-019-03307-x
    DOI: 10.1007/s10479-019-03307-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-019-03307-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-019-03307-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alessio Ishizaka & Vijay Edward Pereira, 2016. "Portraying an employee performance management system based on multi-criteria decision analysis and visual techniques," International Journal of Manpower, Emerald Group Publishing Limited, vol. 37(4), pages 628-659, July.
    2. Lourens Erasmus & Philna Coetzee, 2018. "Drivers of stakeholders’ view of internal audit effectiveness," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 33(1), pages 90-114, January.
    3. Inshik Seol & Joseph Sarkis & Zhihong (Rita) Wang, 2017. "A cross-cultural comparative study of internal auditor skills: UK vs Korea," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 18(3), pages 341-355, September.
    4. Alzeban, Abdulaziz & Gwilliam, David, 2014. "Factors affecting the internal audit effectiveness: A survey of the Saudi public sector," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 23(2), pages 74-86.
    5. Rajagopal, 2014. "The Human Factors," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 9, pages 225-249, Palgrave Macmillan.
    6. Mohammad Badrul Muttakin & Arifur Khan & Dessalegn Getie Mihret, 2017. "Business group affiliation, earnings management and audit quality: evidence from Bangladesh," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 32(4/5), pages 427-444, April.
    7. Nathalie Brender & Bledi Yzeiraj & Emmanuel Fragniere, 2015. "The management audit as a tool to foster corporate governance: an inquiry in Switzerland," Managerial Auditing Journal, Emerald Group Publishing, vol. 30(8/9), pages 785-811, October.
    8. Rainer Lenz & Ulrich Hahn, 2015. "A synthesis of empirical internal audit effectiveness literature pointing to new research opportunities," Managerial Auditing Journal, Emerald Group Publishing, vol. 30(1), pages 5-33, January.
    9. Dessalegn Getie Mihret & Bligh Grant, 2017. "The role of internal auditing in corporate governance: a Foucauldian analysis," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 30(3), pages 699-719, March.
    10. Al-Akra, Mahmoud & Abdel-Qader, Waleed & Billah, Mamun, 2016. "Internal auditing in the Middle East and North Africa: A literature review," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 26(C), pages 13-27.
    11. Alzeban, Abdulaziz & Sawan, Nedal, 2015. "The impact of audit committee characteristics on the implementation of internal audit recommendations," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 24(C), pages 61-71.
    12. Sutana Narkchai & Faudziah Hanim Binti Fadzil, 2017. "The Communication Skill on the Performance of Internal Auditors in Thailand Public Limited Company," International Review of Management and Marketing, Econjournals, vol. 7(4), pages 1-5.
    13. Yousef Hassan & Rafiq Hijazi & Kamal Naser, 2017. "Does audit committee substitute or complement other corporate governance mechanisms," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 32(7), pages 658-681, August.
    14. Lawrence J. Abbott & Brian Daugherty & Susan Parker & Gary F. Peters, 2016. "Internal Audit Quality and Financial Reporting Quality: The Joint Importance of Independence and Competence," Journal of Accounting Research, Wiley Blackwell, vol. 54(1), pages 3-40, March.
    15. Grace Mubako & Tatiana Mazza, 2017. "An examination of internal auditor turnover intentions," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 32(9), pages 830-853, November.
    16. Houqe, Muhammad Nurul & van Zijl, Tony & Dunstan, Keitha & Karim, A.K.M. Waresul, 2015. "Corporate ethics and auditor choice – international evidence," Research in Accounting Regulation, Elsevier, vol. 27(1), pages 57-65.
    17. Veena L. Brown & Jodi L. Gissel & Daniel Gordon Neely, 2016. "Audit quality indicators: perceptions of junior-level auditors," Managerial Auditing Journal, Emerald Group Publishing, vol. 31(8/9), pages 949-980, September.
    18. Johnson, Elizabeth & Reichelt, Kenneth J. & Soileau, Jared S., 2018. "No news is bad news: Do PCAOB part II reports have an effect on annually inspected firms’ audit fees and audit quality?," Journal of Accounting Literature, Elsevier, vol. 41(C), pages 106-126.
    19. Haislip, Jacob Z. & Peters, Gary F. & Richardson, Vernon J., 2016. "The effect of auditor IT expertise on internal controls," International Journal of Accounting Information Systems, Elsevier, vol. 20(C), pages 1-15.
    20. Cai, Shaohan & Jun, Minjoon, 2018. "A qualitative study of the internalization of ISO 9000 standards: The linkages among firms' motivations, internalization processes, and performance," International Journal of Production Economics, Elsevier, vol. 196(C), pages 248-260.
    21. Anitha J., 2014. "Determinants of employee engagement and their impact on employee performance," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 63(3), pages 308-323, April.
    22. Bierstaker, James & Janvrin, Diane & Lowe, D. Jordan, 2014. "What factors influence auditors' use of computer-assisted audit techniques?," Advances in accounting, Elsevier, vol. 30(1), pages 67-74.
    23. Yosra Mnif Sellami & Hela Borgi Fendri, 2017. "The effect of audit committee characteristics on compliance with IFRS for related party disclosures," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 32(6), pages 603-626, June.
    24. Silvia Ferramosca & Giuseppe D'Onza & Marco Allegrini, 2017. "The internal auditing of corporate governance, risk management and ethics: comparing banks with other industries," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 12(3), pages 218-240.
    25. Michael Elliott & Ray Dawson & Janet Edwards, 2007. "An improved process model for internal auditing," Managerial Auditing Journal, Emerald Group Publishing, vol. 22(6), pages 552-565, July.
    26. Emrouznejad, Ali & Rostami-Tabar, Bahman & Petridis, Konstantinos, 2016. "A novel ranking procedure for forecasting approaches using Data Envelopment Analysis," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 235-243.
    27. Ye, Kangtao & Cheng, Yingli & Gao, Jingyu, 2014. "How individual auditor characteristics impact the likelihood of audit failure: Evidence from China," Advances in accounting, Elsevier, vol. 30(2), pages 394-401.
    28. Hichem Khlif & Imen Achek, 2017. "Gender in accounting research: a review," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 32(6), pages 627-655, June.
    29. Frank Kabuye & Stephen Korutaro Nkundabanyanga & Julius Opiso & Zulaika Nakabuye, 2017. "Internal audit organisational status, competencies, activities and fraud management in the financial services sector," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 32(9), pages 924-944, October.
    30. Zuraidah Mohd Sanusi & Takiah Mohd Iskandar & Gary S. Monroe & Norman Mohd Saleh, 2018. "Effects of goal orientation, self-efficacy and task complexity on the audit judgement performance of Malaysian auditors," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 31(1), pages 75-95, January.
    31. Bryane Michael & Mark Williams, 2017. "Could perverse incentives encourage financial services compliance and internal audit staff to ignore or engage in illegal behaviour?," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 33(1), pages 64-89, December.
    32. Yu-Chun Lin, 2018. "The consequences of audit committee quality," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 33(2), pages 192-216, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsai, Pei-Hsuan & Kao, Ya-Ling & Kuo, Szu-Yu, 2023. "Exploring the critical factors influencing the outlying island talent recruitment and selection evaluation model: Empirical evidence from Penghu, Taiwan," Evaluation and Program Planning, Elsevier, vol. 99(C).
    2. Hong Li & Weiwei Zhang & Xiao Xiao & Fei Lun & Yifu Sun & Na Sun, 2023. "Temporal and Spatial Changes of Agriculture Green Development in Beijing’s Ecological Conservation Developing Areas from 2006 to 2016," Sustainability, MDPI, vol. 16(1), pages 1-20, December.
    3. Mohammad Asghari & Amir M. Fathollahi-Fard & S. M. J. Mirzapour Al-e-hashem & Maxim A. Dulebenets, 2022. "Transformation and Linearization Techniques in Optimization: A State-of-the-Art Survey," Mathematics, MDPI, vol. 10(2), pages 1-26, January.
    4. Seyed Hossein Razavi Hajiagha & Jalil Heidary-Dahooie & Ieva Meidutė-Kavaliauskienė & Kannan Govindan, 2022. "A new dynamic multi-attribute decision making method based on Markov chain and linear assignment," Annals of Operations Research, Springer, vol. 315(1), pages 159-191, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thiéry, Stéphanie & Lhuillery, Stephane & Tellechea, Marion, 2023. "How can governance, human capital, and communication practices enhance internal audit quality?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 52(C).
    2. Wang, Xiong & Ferreira, Fernando A.F. & Chang, Ching-Ter, 2022. "Multi-objective competency-based approach to project scheduling and staff assignment: Case study of an internal audit project," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    3. Mélanie Roussy & Alexandre Perron, 2018. "New Perspectives in Internal Audit Research: A Structured Literature Review," Accounting Perspectives, John Wiley & Sons, vol. 17(3), pages 345-385, September.
    4. George Drogalas & Konstantinos Petridis & Nikolaos E. Petridis & Eleni Zografidou, 2020. "Valuation of the internal audit mechanisms in the decision support department of the local government organizations using mathematical programming," Annals of Operations Research, Springer, vol. 294(1), pages 267-280, November.
    5. Christina Vadasi & Michalis Bekiaris & Andreas Andrikopoulos, 2021. "Internal Audit Function Quality and Corporate Governance: The Case of Greece," Multinational Finance Journal, Multinational Finance Journal, vol. 25(1-2), pages 1-61, March - J.
    6. Abbas, Asad, 2023. "Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town," OSF Preprints aktqg, Center for Open Science.
    7. Rakipi, Romina & De Santis, Federica & D'Onza, Giuseppe, 2021. "Correlates of the internal audit function’s use of data analytics in the big data era: Global evidence," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 42(C).
    8. Slapničar, Sergeja & Vuko, Tina & Čular, Marko & Drašček, Matej, 2022. "Effectiveness of cybersecurity audit," International Journal of Accounting Information Systems, Elsevier, vol. 44(C).
    9. Thu Trang Ta & Thanh Nga Doan, 2022. "Factors Affecting Internal Audit Effectiveness: Empirical Evidence from Vietnam," IJFS, MDPI, vol. 10(2), pages 1-14, May.
    10. Fawzi A. Al Sawalqa & Atala Qtish, 2021. "Internal Audit Function Quality and Audit Committees' Practices: Survey Evidence from Jordan," Business and Economic Research, Macrothink Institute, vol. 11(2), pages 20-43, June.
    11. Amad Rashid & Basariah Salim & Halimah Nasibah Ahmad, 2021. "Internal Audit Effectiveness and Audit Committee Characteristics:Empirical Evidence from Pakistan," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 3(1), pages 1-13, june.
    12. Chang, Yu-Tzu & Chen, Hanchung & Cheng, Rainbow K. & Chi, Wuchun, 2019. "The impact of internal audit attributes on the effectiveness of internal control over operations and compliance," Journal of Contemporary Accounting and Economics, Elsevier, vol. 15(1), pages 1-19.
    13. Saeed Rabea Baatwah & Adel Ali Al-Qadasi, 2020. "Determinants of outsourced internal audit function: a further analysis," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 10(4), pages 629-659, December.
    14. Ben Boubakary, 2022. "Audit interne et gouvernance d'entreprise : une lecture théorique au sein des entreprises publiques," Working Papers halshs-03705132, HAL.
    15. Nathanael Betti & Steven DeSimone & Joy Gray, 2022. "The impacts of the use of data analytics and the performance of consulting activities on perceived internal audit quality," Working Papers 2202, College of the Holy Cross, Department of Economics.
    16. Thanh-Lam Nguyen, 2019. "STEAM-ME: A Novel Model for Successful Kaizen Implementation and Sustainable Performance of SMEs in Vietnam," Complexity, Hindawi, vol. 2019, pages 1-23, February.
    17. Steven DeSimone & Giuseppe D’Onza & Gerrit Sarens, 2021. "Correlates of internal audit function involvement in sustainability audits," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(2), pages 561-591, June.
    18. Majid, Hassan, 2023. "Internal Audit Effectiveness and Its Determinant Factors in Commercial Banks of Ethiopia: The Case of Bale Robe Town," OSF Preprints 2xjkd, Center for Open Science.
    19. Wan-Hussin, Wan Nordin & Fitri, Hadiati & Salim, Basariah, 2021. "Audit committee chair overlap, chair expertise, and internal auditing practices: Evidence from Malaysia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 44(C).
    20. Abdalwali Lutfi & Hamza Alqudah, 2023. "The Influence of Technological Factors on the Computer-Assisted Audit Tools and Techniques Usage during COVID-19," Sustainability, MDPI, vol. 15(9), pages 1-22, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:296:y:2021:i:1:d:10.1007_s10479-019-03307-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.