WAYAMBA UNIVERSITY OF SRI LANKA

RESEARCH
PROPOSAL
MGT:3263 RESEARCH METHODOLOGY

094046
DEPARTMENT OF ACCOUNTANCY & BUSINESS FINANCE
 1) Research Topic:

Lower Performance Of Audit Trainees In Audit Firms In Sri Lanka.

2) The Problem:

Why the performance of audit trainees in audit firms in Sri Lanka is below than the
expected level?

3) Research Questions:

 Does the bulk of work upon audit trainees lead them towards lower performance?
 Does the pay/allowance given to audit trainees influence them to work better?
 Do the pre-structured plans provided to audit trainees lead them towards a lower
performance?

4) Research Objectives:

 To study the factors which influence lower performance of audit trainees in audit
firms in Sri Lanka.
 To analyze the factors causing to the lower performance of audit trainees in audit
firms in Sri Lanka.
 To critically evaluate the impact of such factors and asses the degree of influence of
those factors to lower performance of audit trainees in audit sector in Sri Lanka.
 To offer possible recommendations upon findings at the policy makers and other
relevant parties to develop performance management systems for audit trainees in
audit firms.
 5) Significance:

An auditor, a qualified chartered accountant is made from an audit trainee.

So, the performance of an audit trainee should carefully be evaluated. For that, the
conclusions and recommendations provided here, based on the findings of the
research are very much useful to the policy makers, especially to the Institute of
Chartered Accountants of Sri Lanka in planning the training and development
systems as well as performance management systems for the audit trainees in the
audit sector.
In the same manner, the recommendations also are useful to the strategic
level managers in audit firms in Sri Lanka to plan audit trainees’ performance.
Finally, the results also will be beneficial to the audit trainees who are on the
training present and for the persons who are willing to work as audit trainees in
audit firms.

6) Limitations of the Research Study:

 Deciding the sample size is practically complex.

 All the audit firms in Sri Lanka are not operating within a similar capacity
therefore the results on sample may not express an overall conclusion about
the population.
 Factors which do not consider in the research may affect the
recommendations and the conclusions made.
 7) The Conceptual Model:

Bulk of Work on an
Audit Trainee

Salary / Allowance Job Employee

Received Satisfaction Performance

Pre-structured
s Plans Provided

8) Hypotheses:

H1 : Higher the bulk of work upon an audit trainee, the lower will be the employee
performance.

H2: Lower allowance to audit trainee is likely to result in lower employee

performance

H3 : Higher the degree of pre-structured plans given to the audit trainees, the lower
the performance.
 9) Operationalizations Process:

Concept Variable Indicator Measure

1. Performance Job Satisfaction  Allowance/Salary  Rupees per month
 Number of tasks  Number of tasks an
accomplished audit trainee should
accomplish per day
2. Worker  Absenteeism  Number of absent hours  Percentage increased
Dissatisfaction per month/Total hours or decreased
per month

 Turnover  Percentage of turnover  Percentage increased

of audit trainees or decreased
3. Identification Job Commitment  Number of tasks  Percentage increased
with Job completed/Total tasks or decreased
4. Motivation Absenteeism  Number of absent hours  Percentage increased
per month/Total hours or decreased
per month

10) Methodology:

For collecting data for the research, “Primary Data Collection” method is used. As
the coverage of the study is somewhat large, data collection is done using a
“Sample”, which is a segment of the population selected to present the population
as a whole. At the very beginning, three decisions should be taken as;
 Deciding the “Sample”
 Deciding the “Sample Size” and,
 Deciding the “Sampling Technique”
 Among audit firms in Sri Lanka, 15 audit firms have been selected using “Simple
Random Sampling” for collecting data for the research.

After the sample has been selected, use formal lists of questions asked from the
audit trainees. These questionnaires may begin with a series of closed-ended
questions and finish with a section of open-ended questions. In the same manner,
contact methods especially personal interviews also are used in collection of data.

11) Literature Review

The human resource is critical and difficult to manage. It is because human

behaviour is highly unpredictable. It differs not only from individual to individual but
often on the part of same individual at different points of time. In spite of biological
and cultural similarities, human beings not only differ in their appearance but also in
their capabilities based on their background, training and experience. Human
resource or a person at work is the most important component of the undertaking.
Management cannot afford to ignore human resource at any cost.

Every organization has been established with certain objectives to achieve.

These objectives can be achieved by utilizing the resources like men, machines,
materials and money. All these resources are important but out of these the
manpower is the most important. It plays an important role in performing tasks for
accomplishing the goals. For the audit firms, Audit Trainees are a vital resource to
the organization as well as accomplishing its ultimate objective. Further, the business
environment is changing drastically. The environmental factors are uncontrollable.
The need for highly skilled and dedicated manpower is felt who can give the best
output. The firm that gets the advantage over other competitors through their
talented and dedicated manpower can take the lead in the market. The contribution
of audit trainees on job is a most important factor for development and excellence in
business. The performance of audit trainees on different tasks in close coordination
is needed for success of the unit. All these tasks are inter-related to achieve the
targets of both organization and of the trainees.

These are to be performed by the trainee auditors properly so they can give
their best output at the job. This will have great impact on the total production,
sales, profit, progress and market position of the company in the market. Various
factors like skills, training, motivation, dedication, welfare, management policies,
fringe benefits, salary and packages, promotion, communication etc. are responsible
to encourage the people to work sincerely and give their best output.

The importance of employees’ performance must be understood by the

management and sincere efforts must be put in that direction. The management of
the company taking timely steps in that direction will be in position to develop and
motivate the people to do so. Finally the company may take the lead the market and
grab the opportunities available in the market.

Following are advantages of higher performance employees, taken as a

whole, to the individuals, organization, society and nation as a whole;

 The productivity of individual on job increases.

 Employee gets job satisfaction at job.
 Psychological problems of employees come to low level.
 Involvement of employees in their jobs increases.
 A sense of commitment and loyalty among employees develop.
 Employees get higher salaries.
 Quality and quantity of the total production increase.
 Sales and market shares of the company in the market improves.
 Profit improves and that leads to progress of the business.
 Good will of the organization goes high.
 All these contribute in the development of national economy and
living standard of the society as a whole.
So, to achieve above mentioned benefits, the performance of audit trainees in Sri
Lanka should be appraised as lower performance leads demotivation and many
other results begin from it.