Reliance on Internal Audit Departments
Abstract
Statement on Auditing Standards No. 9 (SAS 9) discusses the role of a client′s internal audit department (IAD) in the independent auditor′s examination. Despite the benefits of reliance on the client′s IAD to both the auditor and client, evidence indicates that SAS 9 has not been effectively implemented in practice. This article illustrates the use of the Analytic Hierarchy Process to develop a judgement aid for determining the overall reliance to be placed on a client′s IAD. The judgement aid illustrated may represent an initial step towards effectively implementing auditing standards requiring a great deal of subjective judgement in practice.
Keywords
Citation
Apostolou, B., Harper, R.M. and Strawser, J.R. (1990), "Reliance on Internal Audit Departments", Managerial Auditing Journal, Vol. 5 No. 3. https://doi.org/10.1108/02686909010143155
Publisher
:MCB UP Ltd
Copyright © 1990, MCB UP Limited