Internal Audit Function Today: A Study on the Impact of the Internal Audit Function on the Quality of the External Audit essays & term papers     

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Internal Audit Function Today: A Study on the Impact of the Internal Audit Function on the Quality of the External Audit Free Essay, Term Paper and Book Report

Executive Summary With the implementation of the Sarbanes-Oxley Act post Enron, the focus on the quality of the audit has made many companies realize the importance of strong corporate governance. Consequently the internal audit function (IAF) is playing an increasingly important role in ensuring a strong internal control environment which is a key factor to good corporate governance. This paper serves to outline the relationship between the IAF and how recent initiatives in the IAF have impacted the external audit. We examined the relationship from both the academic and accounting practitioner’s viewpoint and found that for various reasons, external auditors did not rely on the fieldwork conducted by the internal auditors. The principal reason raised by almost all interviewees was the issue of legal liability which discouraged external auditors from relying on fieldwork conducted by internal auditors. Despite this, it was found that many initiatives regarding internal auditors instituted by different regulatory bodies had an indirect impact on the quality of the external a......

Word Count: 4148
Page Count: 16.5  (250 words a page / double spaced)

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