TY  - JOUR
AB  - 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 auditors consider in their reliance on internal auditors. Malaysian Institute of Accountants (MIA), being the standard setter of the auditing standards in Malaysia, will have to develop precise and operational criteria for these factors in planning the audits. The study also shows that there was consistency in audit judgement.
VL  - 19
IS  - 9
SN  - 0268-6902
DO  - 10.1108/02686900410562795
UR  - https://doi.org/10.1108/02686900410562795
AU  - Haron Hasnah
AU  - Chambers Andrew
AU  - Ramsi Rozaldy
AU  - Ismail Ishak
PY  - 2004
Y1  - 2004/01/01
TI  - The reliance of external auditors on internal auditors
T2  - Managerial Auditing Journal
PB  - Emerald Group Publishing Limited
SP  - 1148
EP  - 1159
Y2  - 2024/04/25
ER  -