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An Integrated Data-Driven Methodology for Auditor Performance Appraisals and Auditor Assignment
Optimization

An Integrated Data-Driven Methodology for Auditor
Performance Appraisals and Auditor Assignment Optimization

Tzu-Chien Wang, Department of Business Administration, National Taiwan University

1. Purpose/Objective

With the expansion of related business groups and the impact of digitization on

financial industry in Taiwan, in recent years, financial holding companies often fail
in internal supervision and management due to problems of scheduling auditing-staff.
Although enterprises and corporate management organizations generally believe that
the large amount of data collected from the performance management system may have
great practical value for the audit departments, most of the existing studies only focus

on verifying the relevance between auditing performance and variables. Conversely,
our study emphasizes on the field application of financial control audit. Summarizing
from previously established models of audit performance evaluation, we discuss and

further establish the most optimal performance assessment model using machine learning
regression. Once identify some key factors, we use an integer planning method to
construct an optimal auditor assignment model to assist financial holding companies in
analyzing the existing audit workload and provide a better audit assignment mechanism to
facilitate human resource decisions.

2. Design/Methodology/Approach

To accurately estimate the audit performance of different auditors under different

tasks and to understand the best personnel assignment approach under different data
constraints, using audit data of financial holding companies in Taiwan, we integrate the
random forest technology and heuristic algorithm to construct an analysis model, which
could apply to evaluate the audit performance of internal auditors and optimally assign

audit tasks according to the required performance value.
Since these companies do not provide all the performance data of the assigned
personnel, to generate complete audit data for the assignment planning of senior

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