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Masters Thesis | Finance | Turkiye | Volume 12 Issue 6, June 2023
Factors Affecting the Relationship between Internal Audit and External Audit in Banks and their Impact on Strengthening the Internal Control System and Reducing the Cost of External Auditing
Gehad Khaled Ibrahim Labeeb
Abstract: From the perspectives of internal auditors and external auditors on banks operating in Istanbul, this study sought to identify the factors influencing the relationship between internal audit and external audit, as well as their impact on strengthening the internal control system and lowering the cost of external audit. The study created a questionnaire appropriate for the subject and goals of the study, and (262) questionnaires were distributed to external auditors who perform audits on banks and to internal auditors working in banks operating in Istanbul in order to achieve its objectives. The study used the descriptive statistical analysis approach to define and analyze the study variables using (262) questionnaires with a recovery rate of 100%. The study's findings demonstrated the importance of the complimentary roles that internal audit and external audit play in attaining effectiveness for banks by enhancing the internal control system and lowering the external auditor's fees. Along with the two parties' dedication to ongoing professional development to foster mutual professional trust, the audit committee plays a crucial role in fostering the complementary relationship between the internal auditor and the external auditor as well as the external auditor's reliance on the internal auditor's work. These factors, along with the two parties' existence of effective and regular communication and consultation, all contribute to the relationship being strengthened. The study's conclusion included a number of suggestions, the most crucial of which was the requirement that the Audit Committee fully fulfill its mandate by offering guidance to expand the prospects for collaboration between internal and external auditors. To minimize duplication and accomplish successful audits, the professional should stay current on advances in the banking sector and be eager to communicate and discuss their business goals.
Keywords: Internal audit, external audit, internal control system, reducing the cost, internal control system
Edition: Volume 12 Issue 6, June 2023,
Pages: 2674 - 2686