How to improve the relationship between internal and external auditors ?
Rukundo, Rene Charles
Promoteur(s) :
Francis, Yves
Date de soutenance : 24-jui-2020/26-jui-2020 • URL permanente : http://hdl.handle.net/2268.2/8988
Détails
Titre : | How to improve the relationship between internal and external auditors ? |
Auteur : | Rukundo, Rene Charles ![]() |
Date de soutenance : | 24-jui-2020/26-jui-2020 |
Promoteur(s) : | Francis, Yves ![]() |
Membre(s) du jury : | Riffon, Véronique ![]() Daerden, Frédéric |
Langue : | Anglais |
Nombre de pages : | 82 |
Mots-clés : | [en] Internal audit, External audit, audit committee, relationship, independence/objectivity, competence, and collaboration. |
Discipline(s) : | Sciences économiques & de gestion > Finance |
Public cible : | Chercheurs Professionnels du domaine Etudiants Autre |
Institution(s) : | Université de Liège, Liège, Belgique |
Diplôme : | Master en sciences de gestion, à finalité spécialisée en Financial Analysis and Audit |
Faculté : | Mémoires de la HEC-Ecole de gestion de l'Université de Liège |
Résumé
[en] The external auditors are important factors for assuring that the financial statements are accurate, trustworthy, and free from material misstatements. During the audit process, they perform a series of procedures to evaluate the internal control and to obtain audit evidence. Nowadays, companies are required to have an established internal audit department which, performs similar procedures to those of external auditors. Moreover, the international auditing standards (ISA) circumscribe the framework for external auditors on how to use the work of internal auditors.
Consequently, studies have proven that internal and external auditors do not collaborate so often. Hence, this paper aims to understand what the barriers are, that prevent both actors from collaborating. The pre-existing scientific articles have shed light on barriers that prevent collaboration. Therefore, this paper intends to tackle some of the persisting obstacles and also to provide some solutions. To achieve this, we conducted numerous interviews with experienced external and internal auditors.
Throughout our research, we were able to confirm some barriers and disallow others. One of the issues that were found, was the lack of objectivity of the internal auditors. The internal auditors are competent but not objective due to their affiliation with the company. This is believed to be a significant barrier to external auditors. According to the respondents, some of them believe in outsourcing the internal auditors whilst others suggest the use of the audit committee. Furthermore, most of the respondents agreed that the audit committee is a significant caretaker of independence. Besides, ensuring objectivity, it is believed to be a steppingstone to a significant collaboration by frequently organizing meetings with the internal auditors granting access to accurate information. The companies can aid the collaboration by investing in the internal audit department and by providing adequate professional training, as a result, improving efficiency and reducing audit fees.
To conclude, this paper has proven the existence of collaboration. However, it needs to be enhanced and to do so, the internal auditors must recognize the aim of the external auditors.
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