This paper examines the effects of internal audit sourcing arrangement on the external auditor's reliance decision in the presence of different levels of inherent risk and task subjectivity. We posit that external auditors will rely more on outsourced than in-house internal audit functions...

This paper examines the effects of internal audit sourcing arrangement on the external auditor's reliance decision in the presence of different levels of inherent risk and task subjectivity. We posit that external auditors will rely more on outsourced than in-house internal audit functions...

Audits of reporting groups are increasingly common, yet inspection findings suggest that auditors do not always sufficiently respond to the risks of material misstatement on these engagements. In this study, we investigate whether a restructured risk assessment approach increases auditors'...