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

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Internal auditor selection using a TOPSIS/non‑linear programming model Konstantinos Petridis1   · Georgios Drogalas2 · Eleni Zografidou2

© Springer Science+Business Media, LLC, part of Springer Nature 2019

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. Keywords  Internal auditor selection · Quantitative methods · AHP · TOPSIS · Non-linear programming

1 Introduction The personnel selection has so far concerned many researchers and a compilation of studies can be found in the relevant literature. In this context, the personnel evaluation problem can be applied in every professional sector and industry. Simultaneously, the * Konstantinos Petridis [email protected] Georgios Drogalas [email protected] Eleni Zografidou [email protected] 1

Information Systems and e‑Business (ISeB) Lab, Department of Applied Informatics, University of Macedonia, Egnatia 156, 540 06 Thessaloníki, Greece

2

Department of Business Administration, University of Macedonia, Egnatia 156, 540 06 Thessaloníki, Greece



13

Vol.:(0123456789)



Annals of Operations Research

importance of corporate governance, being on the rise over the past years, has highlighted the internal audit function and resulted in a high demand for skilled and efficient internal auditors and auditing quality (Johnson et al. 2018; Ferramosca et al. 2017; Mihret and Grant 2017). Thus, the internal auditors’ selection is of great importance and attracts research interest. Internal auditing is defined as an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations, which helps organizations to accomplish their goals (Cascarino 2007; Smith 2016). The role of internal auditors is to help the organization adopt a disciplined approach to legislation frameworks, in order to minimize risk and improve governance processes (Hayes 2017). The responsibilities of an internal auditor normally fit in many different multi-discipli