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Reliance on the internal auditors’ work: experiences of Swedish external auditors
Kristianstad University, Faculty of Business, Research environment Governance, Regulation, Internationalization and Performance (GRIP. Kristianstad University, Faculty of Business, Department of Business.ORCID iD: 0000-0003-2417-469X
Kristianstad University, Faculty of Business, Research environment Auditing, Organisation and Society (AOS). Kristianstad University, Faculty of Business, Department of Business. Linnaeus University.ORCID iD: 0000-0002-8938-2150
2018 (English)In: Journal of Management Control, ISSN 2191-4761, E-ISSN 2191-477X, Vol. 29, no 3-4, p. 95-325Article in journal (Refereed) Published
Abstract [en]

The purpose of this study is to explore how external auditors experience their decision to rely on internal auditors’ work. This study employs both qualitative and quantitative methods consisting of semi-structured interviews and questionnaires administered to external auditors in Sweden. Semi-structured interviews were conducted with external auditors who are working in Big 4 audit firms in Sweden and have engagements with internal audit functions. A questionnaire was administered to authorized/approved auditors, members of the Swedish Association of Certified Public Accountants (FAR). Findings indicate that external auditors use the work of internal auditors as they gain efficiency in performing their work. Nevertheless, external auditors may compromise their independence and professionalism through closer involvement with internal auditors, which may lead to uncritical evaluation and use of the reports prepared by internal auditors. At the same time, while relying on the internal auditors’ reports, external auditors appear to be conscious of the consequences for the audit quality they deliver. The study highlights the dilemma faced by external auditors in their cooperative work with internal auditors and the balance/imbalance in their opinions concerning efficiency gains, independence, professionalism and audit quality.

Place, publisher, year, edition, pages
2018. Vol. 29, no 3-4, p. 95-325
Keywords [en]
Auditing, Audit quality, Cooperation, External audit, Internal audit, Reliance, Sweden
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:hkr:diva-18931DOI: 10.1007/s00187-018-00272-7ISI: 000482312600004OAI: oai:DiVA.org:hkr-18931DiVA, id: diva2:1276968
Available from: 2019-01-09 Created: 2019-01-09 Last updated: 2021-09-17Bibliographically approved

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Argento, DanielaUmans, Timurs

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CiteExportLink to record
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