The Influence of External Auditor's Working Style, Communication Barriers and Enterprise Risk Management toward Reliance on Internal Auditor's Work

Paino, Halil; Razali, Fazlida Mohd; Jabar, Faizan Abd

doi:10.1016/s2212-5671(15)01094-1

Cited by 15 publications

(23 citation statements)

References 10 publications

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“…Therefore, it is expected to provide an opinion. There is a comprehensive, efficient, and effective control framework clearly documented and consistently applied to prevent material misstatements on financial statements (Paino et al, 2015). H3: The higher financial distress, the lower-income maximization action will be, especially, on companies that have a high level of audit committee independence.…”

Section: Literature Review and Hypothesismentioning

confidence: 99%

Effect of audit committee characteristics on relationship between financial distress and income maximization actions

Partha

2019

IJSSH

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Section: Literature Review and Hypothesismentioning

confidence: 99%

Effect of audit committee characteristics on relationship between financial distress and income maximization actions

Partha

2019

IJSSH

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“…Moeller (2005) also stated that one of the problems in cooperation is the deficient or poor communication between internal and external auditors. Good communication is a necessary condition for good cooperation (Brody, 2012;Paino, Razali, & Jabar, 2015).…”

Section: Cooperation/coordination Between Internal and External Auditorsmentioning

confidence: 99%

“…They express doubts about internal auditing practices and show particular concern about the independence, objectivity, competence, extent of the work, and the small size of many internal auditing departments (except for the high level of quality in the banking sector), which has a negative effect on the level of trust and cooperation. Paino et al (2015) showed that the barriers to communication are significant and negatively related to external auditors' trust in the work of internal auditors, and Gray and Hunton (2011) said that the external auditor's trust in the internal auditing function is complex and does not necessarily depend on a single factor. Desai, Roberts, and Srivastava (2010) showed that external auditors looked at the interaction between the three main factors of quality (competence, quality of work performed, and objectivity) in evaluating the strength of the internal audit function and found interdependence among the three factors.…”

Section: Cooperation/coordination Between Internal and External Auditorsmentioning

confidence: 99%

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

Morais

Franco

2019

Int J Auditing

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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.

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“…In ISA 315, it is explained that the knowledge and experience of internal auditors can provide information and understanding for external auditors of the entity and its environment as well as identification and assessment of material misstatement [37]. Based on PCAOB's perspective, external auditors who precisely depended on internal audit work will have a significant impact on improving audit efficiency without losing their effectiveness [38,39].…”

Section: Internal Audit Relationship In Determining Audit Fees For Exmentioning

confidence: 99%

The Role of Internal Audit in Corporate Governance and Contribution to Determine Audit Fees for External Audits

Saputra¹,

Yusuf²

2019

JFA

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This study aims to determine the role of the internal audit function in good corporate governance and to know the contribution of the internal audit function to the implementation of external audit and the determination of audit fees. The method used is in-depth and critical review literature. The results of our analysis show that the role of internal audit in corporate governance is to assess the fairness of financial statements, to compliance with applicable standards and rules, and to provide creative advice for the effectiveness and operational efficiency of the company. Effectiveness and efficiency of the implementation of external audits is influenced by the availability of internal audits, knowledge and experience of internal auditors internal audit quality, level of coordination between internal auditors and external auditors, level of risk in the audit environment, external auditor work style, and inherent risk the amount of fee that must be given to the external auditor. So, it can be concluded that the internal audit function has a very important role in corporate governance. Moreover, a quality internal audit function can affect the effectiveness and efficiency of the implementation of external audits and can influence the determination of fees for external auditors.

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The Influence of External Auditor's Working Style, Communication Barriers and Enterprise Risk Management toward Reliance on Internal Auditor's Work

Cited by 15 publications

References 10 publications

Effect of audit committee characteristics on relationship between financial distress and income maximization actions

Effect of audit committee characteristics on relationship between financial distress and income maximization actions

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

The Role of Internal Audit in Corporate Governance and Contribution to Determine Audit Fees for External Audits

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