;A Study on the Performance Evaluation of Auditors in a Diversified Corporation – The Case of Company Q.
Senior management are faced with a challenging problem of staff evaluation, since the performance of some staff functions are difficult to evaluate and quantify. One of these function is intenal audit, who is frequently viewed as an adversary, cop, and trouble-maker by employees. The core business of the audit function is conformance verification. An important question is whether an internal auditor who identifies more anomalies perform better? Thus, it is important that one must first define what are good verification methods and techniques, how to measure. These has to be objective and be described explicitly, so that performance evaluation can be standardized and fair, and can avoid personal prejudice of the senior manament.
Company Q is a business group with unrelated diversification. While it started out as a manufacturer of electronics products, it now spans across various industries, such as, consumer electronics (both own brand as well as ODM), health care, medical equipment, etc. With such a diversification, the nature of the audit job is heterogeneous and highly challenging, but assessment of audits performance has not been satisfactory.
His study aims to provide an insight to this issue, and hope to propose a measure that is not simply counting the cases audited, the anomalies identified, but to reflect the value of the auditing jobs, such that the effectiveness and creditability of the auditing function can enhanced.
This study analysed the problem, and proposes an evaluation framework, which is fair and objective, and hopefully can reflect the value of the auditing function in such a heterogeneous environment.