The Effect of Continuous Auditing on the Relationship between Internal Audit Sourcing and the External Auditor's Reliance on the Internal Audit Function

ABSTRACT

Prior research indicates that external auditors are willing to rely to a greater extent on the work of the internal audit (IA) function when the function has been outsourced, or co-sourced, as opposed to maintained in-house. This article addresses the extent to which this relationship between IA sourcing and external auditor reliance is moderated by the use of continuous auditing. One hundred forty-two auditors...more