Version 1
: Received: 19 March 2024 / Approved: 20 March 2024 / Online: 20 March 2024 (12:22:02 CET)
How to cite:
Ismail, I.H.M.; Sharabati, A.A.; bin AbdulHamid, F.Z.; Ali, A.A.A. A Systematic Literature Review of the External Audit Reliance Issues. Preprints2024, 2024031188. https://doi.org/10.20944/preprints202403.1188.v1
Ismail, I.H.M.; Sharabati, A.A.; bin AbdulHamid, F.Z.; Ali, A.A.A. A Systematic Literature Review of the External Audit Reliance Issues. Preprints 2024, 2024031188. https://doi.org/10.20944/preprints202403.1188.v1
Ismail, I.H.M.; Sharabati, A.A.; bin AbdulHamid, F.Z.; Ali, A.A.A. A Systematic Literature Review of the External Audit Reliance Issues. Preprints2024, 2024031188. https://doi.org/10.20944/preprints202403.1188.v1
APA Style
Ismail, I.H.M., Sharabati, A.A., bin AbdulHamid, F.Z., & Ali, A.A.A. (2024). A Systematic Literature Review of the External Audit Reliance Issues. Preprints. https://doi.org/10.20944/preprints202403.1188.v1
Chicago/Turabian Style
Ismail, I.H.M., Fathilatul Zakimi bin AbdulHamid and Ahmed Ali Atieh Ali. 2024 "A Systematic Literature Review of the External Audit Reliance Issues" Preprints. https://doi.org/10.20944/preprints202403.1188.v1
Abstract
External audit reliance issues on the internal audit function (IAF) are increasingly important in financial auditing, yet its application in audit engagements lags behind other applications. Despite the belief that audit reliance will shape auditing in the future, limited and intervalley publications explore this transformative potential. This paper investigates the increasing importance of external audit reliance issues in financial auditing. It investigates the use of the IAF in external audit reliance decisions and its potential to enhance audit quality, process transparency, and stakeholders' credibility. Through a systematic literature review of 68 scientific articles from 1984 to 2022, factors influencing external auditors' dependence on the IAF are analyzed, including IAF work quality, assistance type, organizational factors, customer pressure, and business risk. The review highlights the IAF's crucial role in improving financial reporting integrity and external audit effectiveness. However, the challenges that allowed external auditors to decide whether to rely on the works of IAF like limited disclosures and accessible data hinder assessing IAF reliance effects, leading to information asymmetry that may impact stakeholder confidence. The paper discusses implications, limitations, and future research directions to explore technology adoption and optimize audit practices, promoting transparency in the audit process.
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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