（2004）The reliance of external auditors on internal auditors.pdfVIP

The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at /researchregister /0268-6902.htm MAJ The reliance of external auditors 19,9 on internal auditors Hasnah Haron 1148 School of Management, Universiti Sains Malaysia, Penang, Malaysia Andrew Chambers Management Audit Ltd, Sleaford, UK, and Rozaldy Ramsi and Ishak Ismail School of Management, Universiti Sains Malaysia, Penang, Malaysia Keywords Internal control, Auditing Abstract External auditors often rely on other professionals for the audit of the financial statements of their clients. Generally, external auditors rely on clients’ internal auditors. Reliance on internal auditors results in cost savings to the client. The objective of this study is to determine which of the criteria as mentioned by AI 610 will be used by the external auditors to evaluate the work of the internal auditors. Respondents of the study consist of those from the big four and non-big four firms located in Kedah and Penang. A one-quarter replicate of 28 Kempthorne’s design was used to determine the experimental task. The findings of the study indicate that technical competence and scope of function are the two most important criteria that external au