Authors: Andreas Koutoupis, Michail Pazarskis

Title: The relationship between External and Internal Auditors: Perceptions of the Greek Market

Abstract

The purpose of this paper is to highlight the contribution of the Internal Auditor work to the work of the External Auditor, as well as the level of cooperation between them. In addition, the perceptions of the Greek Certified Auditors are investigated for a number of factors that may influence their decision to rely on the work of Internal Auditors. These factors are the ability, objectivity and appropriate professional attention of Internal Auditors (SAS 65). A survey was carried out to a sample of Greek Certified Auditors. The questionnaire used examined participant views on whether there is a correlation between their remuneration and independence, whether there is cooperation with the Internal Auditors and the factors that are expected to influence their decision to rely on the work of the Internal Auditors. The findings of the survey reveal that external auditors do not trust the internal audit findings due to the lack of independence of internal auditors and the small size of internal audit. They are convinced that cooperation with internal auditors might be constructive if the latter adopt a more professional approach.