Co-Operation Between Internal and External Auditors: a Comparative Study on Nationalized and Foreign Banks in Bangladesh

6191 Words Sep 11th, 2013 25 Pages
World Journal of Management Volume 2. Number 2. September 2010. Pp. 22 - 35

Co-operation between Internal and External Auditors: A Comparative Study on Nationalized and Foreign Banks in Bangladesh
Rehana Fowzia
Effective co-operation between internal and external audit leads to a range of benefits for both parties, and the clients they serve. This study comparatively examines the influence of different factors on co-operation between internal and external auditors of foreign banks with nationalized banks in Bangladesh. Empirical evidence reveals that co-operation promoted through management and the audit committee is the most important factor for assessing co-operation between internal and external auditors in both nationalized banks and
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The internal auditor is assigned by the management of the bank. They are assigned to find out whether everything is going properly or not. If any problem exists they have to bring it to the notice of the top management and then the concerned authorities take necessary action. But in case of external audit the auditors come from outside and they are assigned by the shareholders. They audit on behalf of the shareholders and the findings they publish on the annual report also give independent opinion. The internal or management auditors work within the organization, so they have better knowledge regarding the organization. ____________________________________________________________________
Rehana Fowzia, Assistant Professor, Department of Business Administration (Accounting), Stamford University Bangladesh.Email:rehana.fowzia@gmail.com,Contact no.: 01715347976.

Fowzia
They may help the external auditors in many cases. This is very important for both the auditors to assist each other. The external auditors are unfamiliar persons in an organization. So they need help from the internal auditors. And to work properly, internal auditors also need to help external auditors. The co-operation of internal audit activity with external audit activity is very important from both points of view: from external audit’s point of view it is important because, it helps external auditors to raise the efficiency of financial statements audit; the relevancy from internal audit’s

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