This diploma work desribes relation between external and internal audit. The theoretical part includes definitions of audit, types and targets of audit and cooperation between external and internal auditors. The diploma work focuses also on processes of external and internal audit. The last chapter of theoretical part describes the Sarbanes Oxley Act. The practical part narrates the theoretical knowledge on real example. For this part I choose outsourcing company Accenture Services, s.r.o.

The thesis is focused on external and internal audit. It describes the principles, the common features and major differences. It also demonstrates their implementation in practice.

This thesis analyzes the materiality, as an important part of the audit. The main goal is to show the individual areas of the audit, which the materiality touches and illustrate its impact. The theoretical part describes the history, legislation, terminology and methodology used in the audit with regard to materiality. Thesis also includes a practical example that illustrates the application of materiality on audit unnamed real company.

The diploma thesis focuses on professions of external and internal auditors. The aim of the thesis is to describe the professional liability of studied professional occupations. This issue is solved from the perspective of the Czech Republic. In the first part the thesis characterizes auditing activities and the Chamber of Auditors of the Czech Republic. It describes requirements of the profession of external auditor and focuses on his workflows. It also characterizes the internal audit and the Czech Institute of Internal Auditors. The thesis describes requirements of the profession of internal auditor and focuses on his workflows. The main part of the thesis defines the professional liability of the external and internal auditors and separately describes the criminal liability of auditors. The last part of the thesis contains a comparison of the discovered information and it also describes selected practical examples of violation of the professional liability of auditors.

Internrevisionen påverkar interna och externa intressenter till företaget. Två intressenter som bland annat påverkas är företagsledningen och externrevisionen. För att internrevisionen ska ge önskad effekt är det viktigt att den håller sig objektiv gentemot företaget. Därför är det viktigt att internrevisionen inte påverkas av företagsledningens mål och incitament. Internrevision av hög kvalité kan bidra till externrevisionen, eftersom externrevisionen kan använda sig av internrevisionens arbete vid granskningen av företaget. Detta väcker vårt intresse för att utforska hur internrevisionen samverkar med företagsledningen och externrevision, samt vad internrevisionens roll är i företaget. Syftet med studien är att utifrån internrevisionens och företagsledningens perspektiv utforska hur internrevisionen samverkar med företagsledningen och externrevision. Genom att studera hur de samverkar kan en förståelse för internrevisionens roll i företaget skapas. Studien har en deduktiv ansats med inslag av induktion. Med utgångspunkt från tidigare forskning kring internrevisionens roll, samt intressent- och agentteorin, har olika faktorer som påverkar internrevisionens samverkan med företagsledningen och externrevision identifierats. För att skapa förståelse kring faktorerna utförs en kvalitativ studie baserad på semi-strukturerade intervjuer. Slutsatsen av studien är att internrevisorn och företagsledningen arbetar nära varandra och kommunicerar kontinuerligt. De strävar efter att arbeta mot samma mål för att tillsammans förbättra företagets verksamhet. Internrevisionens samverkan med externrevisionen visar att de har mest kontakt när den externa revisionen utförs, men att externrevisionen använder sig av internrevisionens arbete. Slutsatsen visar också att internrevisionens roll innebär att hålla företaget inom ramarna för interna och juridiska krav, samt att internrevisionen bidrar till en effektiv verksamhet.

The thesis deals with the public expectations in relation to external audit and especially the difference of these expectations from how auditors themselves percieve their role (so called expectation gap). First, it briefly outlines the origin, development and the role of external audit. The following chapters describe how the non-professional public understands audit, what are the causes of unreasonable expectations and to which areas they are most often related. Finally, the consequences arising from the existence of unreasonable expectations (or expectation gap) are reviewed and ways how to eliminate or at least reduce these expectations (expectation gap) are discussed.

The goal of the thesis is to explain tools and techniques used in the field of audit and compare their use in the context of internal and external audit. The theoretical part states firstly different features of both types of audit, issues of professional ethics and legal framework. Next, tools and methods of external audit are stated, as well as its goals and nature. In the subsequent chapter, the same aspects are explained for internal audit and finally, we discuss the cooperation between and comparison of the two types of audits. The practical section is focused on usage of the techniques in practice and their benefit in the form of practical experience. Real company data are used to demonstrate usage of the described techniques in practice in external and internal audit. In the final chapter, comparison of the results of both audits are stated, i.e. the auditor opinion and internal audit report which include suggestions for improvement in the audited fields.

The thesis deals with external and internal audit and is mainly focused on the benefits of both audits. The historical evolution, the definition and nature of external and internal audit are gradually introduced in the theoretical part. There are also featured the Czech and international legal regulations of both audits. The relationship between external audit and accounting is described, and then in the case of internal audit, it is the relationship between internal audit and internal control. One entire chapter is devoted to the comparison and partnership of the external and internal audit. In the practical part three companies, which are obliged to do external audit and which have also created an internal audit department, are presented. The attention is paid to the information about both audits that are published in the company annual reports. The benefits of external and internal audit are described from the perspective of the company and the users of audit results.

The objective of this research is to explore how external auditors rely on the work of internal auditors in audit firms in China. This study uses a qualitative method of semi-structured data collection interviews. Semi-structured interviews were conducted with internal auditors and external auditors working in China. On the basis of a summary of the existing literature on internal audit, external audit, the reliance of external audits on internal audit and audit quality, this paper analyses and compares the external auditor’s reliance on internal audit and conceptualizes the results of the data analysis. Nevertheless, according to interviews, at present, small and medium- sized enterprises rarely set up an internal audit department, only large companies and government departments in China set up an internal audit, because, firstly, the cost of an internal audit, secondly , the lack of professional internal audit staff and internal audit outsourcing in China is of this kind of legal form. The study showed that the qualitative analysis has provided evidence of the dependence of external audits on internal audits continue to exist in China. In addition, the study showed that Internal auditing needs to maintain independence and objectivity, while external auditing needs to ensure professionalism, independence and authenticity. To a certain extent, external audit relies on internal audit to save time and improve efficiency in order to improve audit quality in china. However, this dependence is based on the independence of the internal audit and the external audit and cannot be entirely dependent on the authenticity that will lead to the recurrence of similar Yin Guangxia incidents.

Yes / Purpose - This study aims to explore: the actual usage of GAS features among Egyptian external auditors, through the technology acceptance model (TAM); how the conceptual complexity of GAS features impact its actual usage; and what factors influencing the GAS use by Egyptian external auditors. Design/methodology/approach - External audit professionals at twelve international audit firms, including the Big 4 and eight medium-sized firms, in Egypt were surveyed. Findings - The results show that the basic features including database queries, ratio analysis, and audit sampling were higher in GAS use, perceived usefulness, and perceived ease of use among Egyptian external auditors than the advanced features: digital analysis, regression/ANOVA, and data mining classification. The SEM analysis by GAS features suggests that perceived ease of use has a stronger effect on GAS use when the conceptual complexity of GAS features is high. The analysis also support that the use of GAS by Egyptian external auditors is more affected by co-worker, supervisor, or organization through perceived usefulness, but not by job relevance, output quality, and result demonstration. Research limitations/implications - Although Egyptian external auditors participated in this study may limit the extent to which the findings may be generalized, the responses provide an insight into the actual usage of GAS features by external auditors and the impact of conceptual complexity of GAS features, which is consistent with the literature concerning the relatively low level of utilizing the advanced features of GAS by internal auditors, suggesting that the issues revealed should be of concern. Practical implications - The results reported in this paper are useful to audit software developers and audit firms in their understanding of factors influencing GAS usage in a different audit context. Originality/value - The study adds value to prior research by providing context-contingent insight into the application of technology acceptance model in an unexplored audit context.