Outsourcing the Internal Audit Function and Other Factors Affecting the External Auditor’s Reliance Decision

Authors

David Wood, Brigham Young University
Dr. Douglas F. Prawitt, Brigham Young University

Keywords

internal audit function, external auditor, reliance decision

College

Marriott School of Management

Department

Accountancy

Abstract

Internal audit has undergone significant changes in the last few years. In particular, outsourcing of the internal audit function (IAF), often to large CPA firms, has grown in popularity as companies seek to reduce costs and to focus on core business competencies. While third-party providers claim to offer comparable or superior services to those of in-house IAFs (for example see Moss Adams 2005), the Institute of Internal Auditors (IIA) maintains that an IAF “housed internally within the organization (IIA 1998)” is the ideal structure for internal auditors.

Recommended Citation

Wood, David and Prawitt, Dr. Douglas F. (2013) "Outsourcing the Internal Audit Function and Other Factors Affecting the External Auditor’s Reliance Decision," Journal of Undergraduate Research: Vol. 2013: Iss. 1, Article 2448.
Available at: https://scholarsarchive.byu.edu/jur/vol2013/iss1/2448