Combining AHP and GP Models to Optimal Allocations of Internal Audit Time (Case Study: Central Bank of Iran)

Internal auditing has undergone profound changes in the last two decades. In the past, the main task of internal auditing involved controlling two-way accounting records in order to detect errors. On the other hand, today, this type of auditing pays attention to controls for the purpose of risk management and tries to develop appropriate ways to increase the value of the organization under investigation. Value is created through expanding the production of goods and services, as well as the optimal use of resources. Time is one of the limited resources of the internal audit unit, and its optimal allocation among different audit projects is a multi-criteria problem, which includes qualitative and quantitative variables. This research study presents a combined approach of hierarchical models and ideal planning for the optimal allocation of internal audit time in the Central Bank of the Islamic Republic of Iran. The results show that optimal time allocation provides the necessary flexibility to minimize risk.