Deciding factors in cooperation and trust between internal and external auditors in organizations: An exploratory analysis

Abstract

The general aim of this study is to assess the relationships between external and internal auditors concerning cooperation and trust as resources integrated in organizations' lines of defense, to favor solid, opportune, and transparent decision‐making in organs of governance. More precisely, the specific aims are: (1) to analyze the relationship between trust and cooperation; (2) to explore and analyze the categories of the mutually important factors for trust and cooperation; and (3) to analyze the differences between internal and external auditors. To achieve these goals, quantitative and exploratory research was undertaken, with data collection through surveys directed to the two auditor groups (internal and external) in Portugal. In order to analyze if there were relations between trust and cooperation, logistic regression was performed. Based on exploratory factor analysis of principal components, it was possible to extract three factors for cooperation and trust: (1) work performance, (2) coordination/collaboration, and (3) competence. A multiple linear regression was also used to check the differences between internal and external auditors for the three factors identified. From the two groups involved in this study, it was possible to gain each group's perception of the professional relationship concerning cooperation and trust as determinant variables in auditing. It was found that there is still a long way to go and that each group has slightly different perceptions. This study contributes to the scientific and professional community regarding the perception of cooperation and trust between these professionals.

Internal audit quality and earnings management: evidence from the UK

“…On the other hand, some studies provide evidence that supports the positive association between IAF competence and firm operational efficiency (Chen et al , 2020), internal control quality (Oussii and Boulila Taktak, 2018) and financial reporting quality in financial institutions (Kaawaase et al , 2021), whilst they found no evidence that supports such association with IAF independence. In addition, Morais and Franco (2019) surveyed external auditors in Portugal and found that competence is most important for external auditors to trust and cooperate with internal auditors.…”

Influência do comportamento dos auditores em conflitos organizacionais na confiança e na cooperação entre auditores internos e externos

“…Amplamente, a função da auditoria transmite aos seus profissionais dilemas contundentes para a execução das atividades (Morais & Franco, 2019). Por um lado, os auditores visam realizar seu trabalho com a maior cobertura possível, a fim de transmitir confiança.…”

“…Por um lado, os auditores visam realizar seu trabalho com a maior cobertura possível, a fim de transmitir confiança. Mas, por outro, desejam reduzir custos, serem mais eficientes e evitar ou reduzir excessos que geram insatisfação nas organizações, limitações à eficiência, além de buscar minimizar o risco de seu trabalho (Morais & Franco, 2019). Resoluções para tais impasses têm sido investigadas pela literatura a partir de fatores de confiança e de cooperação no relacionamento entre auditores internos e externos.…”

“…Estudos investigaram fatores isolados como influenciadores da decisão de confiar na auditoria interna a partir do ponto de vista dos auditores externos: critérios para avaliar o trabalho dos auditores internos (Haron et al, 2004), importância de fatores influenciadores da dependência do auditor externo na auditoria interna (Suwaidan & Qasim, 2010), confiança na auditoria interna (Mihret & Admassu, 2011), como a dependência dos auditores externos sobre o trabalho dos auditores internos (Brody, 2012;Paino et al, 2015). Por outro lado, estudos verificaram percepções dos auditores internos quanto à confiança no processo de auditoria externa (Endaya, 2014;Saidin, 2014;Morais & Franco, 2019).…”

“…A auditoria interna de qualidade, no que tange à competência, à objetividade e ao desempenho da equipe no trabalho, contribui para a eficácia da auditoria externa (Al-Twaijry et al, 2004). Neste sentido, a cooperação e a confiança entre estes profissionais, conjuntamente com uma boa comunicação e criação de redes, podem contribuir para um melhor compartilhamento de conhecimentos, ferramentas e metodologias que ajudem de modo apropriado, rápido e transparente a tomada de decisão oportuna no contexto dos trabalhos (Morais & Franco, 2019).…”