Internal audit function characteristics and external auditors' co‐sourcing in different institutional contexts

Jokipii, Annukka; Meo, Fabrizio Di

doi:10.1111/ijau.12162

Cited by 8 publications

(9 citation statements)

References 43 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…1. Rittenberg and Covaleski (1997) report that public accounting firms generate two to three times the revenue from IAF than from financial statement audit. A Common Body of Knowledge study in 2015 reveals a considerable amount of fees paid to outsourced IAF providers (Jokipii and Di Meo, 2019); this branch of revenue is expected to increase significantly over the next five years (MarketWatch, 2020). …”

Section: Notesmentioning

confidence: 99%

Does the expertise of outsourced IAF providers affect audit efficiency? Empirical evidence from an emerging market

Baatwah

Omer

Aljaaidi

2021

PAR

View full text Add to dashboard Cite

Purpose This study aims to examine the effect on audit efficiency of outsourced internal audit function (IAF) providers with industry and/or firm-specific expertise. Drawing on relevant studies from external and internal audit literature, the authors assume that such IAF providers are associated with greater audit efficiency as proxied by audit report lag and audit fees. Design/methodology/approach Based on a sample of firms listed on the Omani capital market during 2005–2019, the pooled regressions are used to test the developed hypotheses. The authors use the market share approach to identify outsourced IAF industry expertise providers and tenure to measure the firm-specific expertise of outsourced IAF providers. Findings The authors find that industry outsourced IAF providers are not associated with shorter audit report lag and lower audit fees. The authors also find that firm-specific expertise outsourced IAF providers are associated with a greater reduction in audit report lag and audit fees. These conclusions are robust under a battery of analyses. The significant contribution of firm-specific expertise outsourced IAF providers to audit efficiency is incremental when abnormal audit report lag and audit fees analysis is conducted. Originality/value The results are the first to attest to the contribution of outsourced IAF with firm-specific expertise. They also show that industry expertise held by outsourced IAF providers does not contribute to audit efficiency.

show abstract

Section: Notesmentioning

confidence: 99%

Does the expertise of outsourced IAF providers affect audit efficiency? Empirical evidence from an emerging market

Baatwah

Omer

Aljaaidi

2021

PAR

View full text Add to dashboard Cite

show abstract

“…The implementation of this model provides revenue growth for corporations and companies; it is also a platform for the development of other creative models (Richter et al, 2018 ). In addition, there are the following main types of outsourcing: Outstaffing—formed on the basis of the lease of temporary (seasonal) employees to perform various works (Blagorazumnaia, 2018 ); Insourcing is the creation of the company's own separate business unit, providing services both to internal departments and external users (Johansson et al, 2021 ); Cosourcing—the performance of certain activities at the expense of their own staff and external performers (Jokipii & Di Meo, 2019 ); Offshoring (or offshore outsourcing)—the transfer of unimportant business processes to executing companies in another geographic location (Munjal et al, 2019 ); Multisourcing—the distribution of work among several outsourcers, each of which is universal (Könning et al, 2019 ). …”

Section: Literature Reviewmentioning

confidence: 99%

“…Cosourcing—the performance of certain activities at the expense of their own staff and external performers (Jokipii & Di Meo, 2019 );…”

Section: Literature Reviewmentioning

confidence: 99%

Economic Efficiency of Outsourcing Business Models: A Comparative Assessment

Kulembayeva

Seitkaziyeva

Yelshibayev

2021

Glob J Flex Syst Manag

View full text Add to dashboard Cite

This study aims to form a methodological approach to assess outsourcing business models and identify the most acceptable one for a modern enterprise. The research methodology is based on the author's approach, which includes cognitive map analysis and a simplicial complex. The study was tested on two Information Technology companies in Russia. Based on the determination of the profit elasticity on the manageable vertices of outsourcing business models, the most attractive in terms of efficiency criterion in the form of profit is the outsourcing business model of developing in-house non-IT services. The analysis of structural connectivity made it possible to rank the factors by the level of importance for the preservation of the business model. Modeling the effectiveness of implementing the formed outsourcing business models provided an opportunity to increase profits for the investigated IT companies by increasing the number of single-type projects. The conducted modeling of changes in relations with customers in the studied IT enterprises shows the inexpediency of changing customer relations in BM3. It is proved that certain factors can be replaced without losing the integrity of the business model. The scientific contribution of this study is the proposed methodological approach for assessing the effectiveness of an outsourcing business model. Based on the application of this methodology, the strategic objectives are linked to the business model in the process of achieving them (the achievement of strategic objectives under the influence of the selected outsourcing business model is shown).

show abstract

“…Adanya unsur pemenuhan kebutuhan utama demi tercapainya kepentingan stakeholder serta menaati dan mematuhi standar profesi audit internal berlaku secara internasional. Dalam memenuhi adanya tanggung jawab IAF secara efektif, segala aktivitas yang ada dalam IAF harus memiliki kecukupan sumber daya serta adanya staf yang memiliki kemampuan dengan sikap profesional dengan mematuhi serangkaian kinerja yang diakui internasional untuk profesi audit internal (Jokipii & Meo, 2019). Sejalan dengan Narayanaswamy et al (2019) di nyatakan bahwa IAF dikatakan efektif berasal oleh kualitas dalam diri IAF dan dukungan manajemen secara kuat.…”

Section: Hasil Dan Pembahasanunclassified

Internal Audit Function Sebagai Penyedia “Kenyamanan” Komite Audit

Setyawati

Bernawati

2020

jamal

View full text Add to dashboard Cite

Internal Audit Function sebagai Penyedia "Kenyamanan" Komite Audit. Penelitian ini menjelaskan makna "kenyamanan" dalam perspektif internal audit function (IAF) dengan komite audit. Metode yang digunakan adalah studi literatur pada sejumlah jurnal bereputasi. Penelitian ini menemukan bahwa keefektifan IAF memberikan jaminan peningkatan pengendalian internal serta peningkatan kenyamanan yang signifikan untuk komite audit. Pengetahuan unik, pertemuan interpersonal rutin, dan kolaborasi korporatif antara auditor internal dan auditor eksternal juga mampu meningkatkan kenyamanan komite audit. Beberapa manfaat lainnya juga dihasilkan dari kerja sama IAF dengan komite audit untuk menambah kenyamanan. Abstrack: Internal Audit Function as a "Convenience" Provider for Audit Committee. This study explained the meaning of "comfort" in the perspective of the internal audit function (IAF) with the audit committee.The method used was a literature study in a number of reputable journals. This study found that the effectiveness of the IAF provides a guarantee of increased internal control as well as a significant increase in comfort for the audit committee. Unique knowledge, regular interpersonal meetings, and corporate collaboration between internal and external auditors were also able to increase the comfort of the audit committee. Several other benefits also resulted in added convenience.

show abstract

Internal audit function characteristics and external auditors' co‐sourcing in different institutional contexts

Cited by 8 publications

References 43 publications

Does the expertise of outsourced IAF providers affect audit efficiency? Empirical evidence from an emerging market

Does the expertise of outsourced IAF providers affect audit efficiency? Empirical evidence from an emerging market

Economic Efficiency of Outsourcing Business Models: A Comparative Assessment

Internal Audit Function Sebagai Penyedia “Kenyamanan” Komite Audit

Contact Info

Product

Resources

About