Internal and External Audit Conflicts
Ideally, auditing report or information is majorly based on the ability and skills of the auditor to interpret accounting standards and procedures in the financial matters. Therefore, individual opinions play an important and which may be the cause of conflict between internal and external auditor ( Alleyne and Hudaib, 2013) . The two types of audit are distinct, but they have complementary functions. In ensuring quality and objectivity, it is important to control the functions of internal audit in supporting an external audit. The internal audit has a broad remit such as covering, and to some extent, they may make a judgment about the work performed by the external audit ( Pizzini and Ziegenfuss, 2014) .
In cases where internal audit and external audit submit conflicting, the first action is to have an effective reporting relationship between the audit committee and the major parties. Through practicing of positive working relationships, there will be exposure, interaction, and confidence in getting a solution to the conflicting reports ( Khlif and Samaha, 2014) . Alternatively, it is essential to have a position description and performance assessment of the audit committee chairs. The assessment process would involve setting agendas of the audit, fulfilling Charter requirements and assessing committee effectiveness. Another relevant action is for the audit committee to make the internal and external audit understand the material impact on the Company's account and management's choices ( Nickell and Roberts, 2014) . Thus, all parties should have a clear agreement on the critical accounting policies for the disclosure of operating results and financial conditions.
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Since the major source audits reporting conflict is the opinion, each audit group should focus on their scope of their opinion ( Alzeban and Gwilliam, 2014) . According to Pitt (2014), external audit opinion should be limited to assessing the true and fair value of presented financial statements. The external audit should focus their opinion on giving the assurance on governance and risk management.
References
Alleyne, P., Hudaib, M., & Pike, R. (2013). Towards a conceptual model of whistle-blowing intentions among external auditors. The British Accounting Review , 45 (1), 10-23.
Alzeban, A., & Gwilliam, D. (2014). Factors affecting the internal audit effectiveness: A survey of the Saudi public sector. Journal of International Accounting, Auditing and Taxation , 23 (2), 74-86.
Khlif, H., & Samaha, K. (2014). Internal control quality, Egyptian standards on auditing and external audit delays: Evidence from the Egyptian stock exchange. International Journal of Auditing , 18 (2), 139-154.
Nickell, E. B., & Roberts, R. W. (2014). Organizational legitimacy, conflict, and hypocrisy: An alternative view of the role of internal auditing. Critical Perspectives on Accounting , 25 (3), 217-221.
Pitt, S. A. (2014). International standards for the professional practice of internal auditing.
Pizzini, M., Lin, S., & Ziegenfuss, D. E. (2014). The impact of internal audit function quality and contribution on audit delay. Auditing: A Journal of Practice & Theory , 34 (1), 25-58.
