A combined AHP-GP model to allocate internal auditing time to projects

The optimal allocation of internal auditing time among competing projects is a multi-criteria problem that includes both qualitative and quantitative factors. This paper discusses an integrated approach where the analytic hierarchy process (AHP) is used to deal with qualitative risk assessments and a goal programming (GP) model to distribute available hours in such a way that risk is minimised. Additional considerations, such as maximum and minimum allowable project hours, risk reducing factors and risk levels, are also taken into account. Following a description of the models and framework, a brief case study is presented in which the framework was empirically evaluated.