An Analytic Network Process Model for Internal Auditor Selection

Abstract

There has been an increasing amount of research on personnel selection in many business disciplines (Hough & Oswald, 2000; Breaugh & Starke, 2000). Research on internal auditor selection, however, has had limited exposure in the auditing literature (Bailey, Gramling, & Ramamoorti, 2003). Recently, Seol and Sarkis (2005) introduced an analytic hierarchy process (AHP) model that used a decision hierarchy based on the CFIA (competency framework for internal auditing) framework. A limitation of AHP, however, is the assumption of strict hierarchical relationship that needs to exist among factors.

The purpose of this paper is an introduction of a more robust model, the analytical network process (ANP), which relaxes the strict hierarchical and decomposition levels of the hierarchy and incorporates possible interrelationships and interdependencies of various personnel selection criteria, factors, and alternatives. In illustrating the application, we return to the CFIA model framework, describe how and where interdependencies exist amongst the CFIA factors/attributes, and how ANP is used in the internal auditor selection process. The illustration will also describe some sensitivity analysis for the ANP approach. The tool is not without its limitations that include the potential for geometrically more questions and information elicitation from the decision makers. Finally managerial and research implications associated with the technique and results are described.

Citation

Sarkis, J. and Seol, I. (2006), "An Analytic Network Process Model for Internal Auditor Selection", Lawrence, K.D. and Klimberg, R.K. (Ed.) Applications of Management Science: In Productivity, Finance, and Operations (Applications of Management Science, Vol. 12), Emerald Group Publishing Limited, Leeds, pp. 215-234. https://doi.org/10.1016/S0276-8976(06)12015-5