Track: Operations Research

Abstract

This study utilized a Linear Programming (LP) model for the assignment of internal audit staff to different audit projects with varying complexities and skill level requirements. Numerous auditor allocation studies proposed models that minimized the cost, however, since the internal audit function is not a revenue-generating function, the efficiency ratings of each audit staff were used and converted these into regrets ratings which were later on used as factors in solving this allocation problem. The Lingo 18.0 software was used to determine the proper allocation of audit staff that will maximize the audit efficiency for a mid-sized internal audit department. The results of this study were presented to the Director of the internal audit department who plans to use this model to get further insights on whether the model will be beneficial in optimizing the audit staff allocation as well as improve the overall quality and efficiency of the internal audit function as compared to the current traditional manual allocation process.