دانلود رایگان مقاله انگلیسی اهداف اطمینان و مشورتی حسابرسی داخلی همکاری با شواهد تجربی حسابرس خارجی - SSRN 2018

Abstract

This study examines the extent to which external auditors (EAs) make use of the work of internal auditors. We explore this issue from a chief audit executive (CAE) and from an EAs perspective. Furthermore, we introduce a new category of internal audit function (IAF) reliance indicators, namely specific purposes the IAF has in the company. Thereby, we contribute to prior literature by addressing Bame-Aldred et al.’s (2013) recommendation to provide more evidence on the drivers of the extent of IAF reliance. Using ordered logistic regression models to analyze the data we gathered from CAEs, we find that EAs are more likely to use the IAF results if the IAF has an assurance-related purpose. For an IAF with an advisory-related purpose the findings are mixed. Based on univariate tests, from an EAs perspective, we find the strongest positive influence on the usage intensity of the IAF results if its focus is on risk management.

V. DISCUSSION AND CONCLUSION

Our results provide novel empirical evidence on determinants that explicitly drive the usage intensity of IAF results by the EA. We examine this issue first from a CAE perspective and validate our results using additional data from EAs. As described above, the reliance and cooperation decision of an EA is based on numerous visible and invisible factors. Our research approach culminated in a model that includes a new IAF realiance category, namely specific purposes of the IAF, in order to describe the (measurable) cooperation between the IAF and the EA. We distinguish between assurance-related purposes and advisory-related purposes of the IAF. This approach allowed for a more detailed insight and understanding of the cooperation between the IAF and the EA.

Depending on the purpose of use, we observed different results. From a CAE’s perspective, the findings document that if IAF results are used regularly for assurancerelated purposes, e.g. the internal control system or the risk management system, the EAs use the IAF results more intensively. Evaluating the internal control system quality is an activity that is provided by both the IAF and EA, although both have different objectives and scopes. An IAF with one major field of work in the area of internal control system stands for a high-quality IFA which in turn appears to lead to a more intensive use of the IAF results. The EA can gain possible efficiency gains, because he/she can use IAF results and therefore can probably reduce his/her testing procedures in this regard. We also identified a similar effect with regard to risk management purposes. Both IAF and EA consider the risk management system in their respective audit, again with different objectives and scopes. Only a functionally and well-implemented risk management system can minimize all kinds of risks over the long run. Thus, EAs as well as the IAF are interested in a well-functioning risk management system, especially if the board and managements see the importance of risk management. The strong focus on risk management of the IAF implies a high-quality IAF which in turn explains the more intensive use of the IAF results.