Outsourcing Internal Audits Threatens External Auditor Independence, Raising Concerns for Businesses and Investors
The study looked at how outsourcing internal audits affects how independent external auditors are perceived. The researchers found that when companies outsource their internal audits, it can make external auditors seem less independent. This means that when internal audits are done by an outside company, it may raise concerns about the objectivity and impartiality of the external auditors.