Efficacy of Pakistan's Internal Auditing Function : A Perception of Pakistan's External Auditors

Abstract

The current study explores the Internal Audit Function's (IAF's) possible significance in corporate governance. It must function well to support sound corporate governance. IAF has numerous stakeholders, including the Board of Directors (BoD) and external auditors. Every one of these stakeholders has unique requirements and perspectives regarding the IAF. We attempted to investigate how external auditors see the function and efficacy of IAF. Research conducted interviews with eight external auditors from various companies to achieve this. The results indicate that IAF's responsibilities include risk management, fraud risk management, and compliance and review of internal controls. This research also found that the IAF's current role may be more effectively performed by granting it independence and appointing persons with the necessary training, expertise, and experience. An efficient IAF can also aid external auditors.