An Integration of AHP and DEA to measure performance of Internal Auditing

• Main Authors: Gary Wang, 王家賢
• Other Authors: Min-Chun Yu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/47367220357761450716

碩士 === 國立高雄應用科技大學 === 商務經營研究所 === 96 === Internal auditors often treat each auditing item equally important and evaluate the performance of the audited departments accordingly. This approach provides misleading results and sometimes incurs complaints from departments that receive poor ratings. This research aims at establishing an auditing procedure capable of providing fair evaluation standard for various departments. This research proposes an auditing procedure that integrates multi-criteria methodologies such as Analytic Hierarchy Process (AHP) and Data Envelopment Analysis (DEA). AHP is utilized to generate scoring weights by collecting opinions from departments to be audited and experts specialized on auditing relating industries. DEA is therefore applied for measuring the operation efficiencies by incorporating two inputs to the audited departments and the respective weighted audit score as the only output. Internal quality auditing data of a TFT-LCD assembly house based in Southern Taiwan is used to demonstrate the implementation of the proposed auditing procedure. Sensitivity analysis and slack variable analysis are also conducted to show how the audited system can be improved.