THE RELIANCE OF EXTERNAL AUDITORS ON THE WORK PERFORMED BY INTERNAL AUDITORS AND ITS IMPACT ON AUDIT ON BANKS A CASE OF THE FIRST ABU DHABI BANK, UAE

Madher E. A. Hamdallah ()
Additional contact information
Madher E. A. Hamdallah: Al-Zaytoonah University of Jordan, Faculty of Business, Accounting Department

Economics and Management, 2020, vol. 17, issue 1, 68-80

Abstract: The primary purpose of this research is to study the impact of external audit’s reliance on the work performed by an internal audit and its impact on The First Abu Dhabi Bank in UAE, as the case study. Despite the major advances made in the profession of Internal Auditing Function (IAF) and the many benefits of relying on the work performed by these professionals, the collaboration between the profession and external auditing is still a less popular practice in developing countries; as the UAE; many organizations have not picked up. It is important to investigate the reasons that led to this situation. Also, among the few instances where there is reliance on the work of Internal Auditing Function, it is vital to investigate the attribute of the Internal Auditing Function work that guarantees reliance. Lastly, the study aimed to understand the different areas where external audit and internal audit collaborate. By using descriptive and ANOVA analysis, the results derived that external auditors do not actually depend on the internal auditors’ inputs; however they rely on the work performed by the in-house auditors. Regarding organizational attributes of internal audit function depends on the audit process and that an audit committee comprised of external member inaugurated. However the aud it area reliance on work performed by Internal Audit Function focused mainly on the internal control mechanisms, audit stockholders’ equity, and audit of fixed assets

Keywords: Audit; Internal Audit; Internal Audit Function; and External Audit (search for similar items in EconPapers)
JEL-codes: M41 M42 (search for similar items in EconPapers)
Date: 2020
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://em.swu.bg/images/SpisanieIkonomikaupload/Sp ... sue_1_2020-68-80.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:neo:journl:v:17:y:2020:i:1:p:68-80

Access Statistics for this article

More articles in Economics and Management from Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD Contact information at EDIRC.
Bibliographic data for series maintained by Vladislav Krastev ().