（1999）External Auditors Reliance on Work Performed by Internal Auditors：The Influence of Fee Pressure on This Reliance Decision（Discussion2）.pdfVIP

Auditing : A Journai of Practice Theory Vol. 18, Supplement 1999 DISCUSSION OF External Auditors Reliance on Work Performed by Internal Auditors: The Influence of Fee Pressure on This Reliance Decision D. Neil McFadgen INTRODUCTION a control group with no background as to client hope you will excuse my limited experi- or partner preferences? Who has final say over ence in reading research studies such as audit approach and scope? Is it appropriate to IGramling (1999). Frankly, I was disap- assume, without evaluating the audit procedu- pointed with it. I think the conclusion says it res selected to address the risks, that the quan- all: tum of time spent on an audit directly impacts Notwithstanding these caveats, the results effectiveness? What was the particular experi- of this study suggest some concem about ence of the managers in previous engagements the effects of client fee pressure on audi- when relying on intemal audit? Was the depth tors completion of the financial statement of testing the ordering of infomiation cues audit. Continued and direct investigation of sufficient? whether such pressure negatively affects auditor independence and audit effective- ness is needed in order to address the con- Control Group cerns of observers of the audit profession The study