Compensation of professional employees:A survey of auditors in multinational audit firmsBaseo in Nairobi

Abstract

The natural goal of a compensation fonnula is to distribute income equitably based on capital, productivity and time in the firm. The aim of this study was to investigate the method of compensation of holders of audit jobs in multinational audit finns based in Nairobi. The specific objectives were to establish the factors considered when audit firms carry out pricing of audit jobs and to establish methods these firms use to compensate various job components of audit jobs. Audit firms were chosen because of the preciseness or specificity of the components audit jobs require and the need to emphasize these specifications at the procurement stage and in auditor development programs. The results indicate that the most preferred method of determining the worth of each job was the point method, while the most important factor that was considered while carrying out job pricing was performance, External and internal equity, global competition and cost of living scored averagely the same as the second most important factors.