International Journal of Social Science & Economic Research
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Sahar said hamed mohamed

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Sahar said hamed mohamed
Assistant Lecturer, Faculty of Commerce, Damanhour University, Egypt

Mohamed, Sahar said hamed. "THE EFFECT OF INTERNAL AUDIT FUNCTION SOURCING ON THE EXTERNAL AUDITOR'S RELIANCE DECISION: AN EXPERIMENTAL STUDY IN EGYPT." Int. j. of Social Science and Economic Research, vol. 4, no. 2, Feb. 2019, pp. 1538-1557, Accessed Feb. 2019.
Mohamed, S. (2019, February). THE EFFECT OF INTERNAL AUDIT FUNCTION SOURCING ON THE EXTERNAL AUDITOR'S RELIANCE DECISION: AN EXPERIMENTAL STUDY IN EGYPT. Int. j. of Social Science and Economic Research, 4(2), 1538-1557. Retrieved from
Mohamed, Sahar said hamed. "THE EFFECT OF INTERNAL AUDIT FUNCTION SOURCING ON THE EXTERNAL AUDITOR'S RELIANCE DECISION: AN EXPERIMENTAL STUDY IN EGYPT." Int. j. of Social Science and Economic Research 4, no. 2 (February 2019), 1538-1557. Accessed February, 2019.

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Prior research indicates that external auditors are willing to rely on the work of the Internal Audit Function (IAF) when this function has been outsourced, or co- sourced, as opposed to maintain it in-house. This paper investigates whether external auditors in Egypt are sensitive to IAF sourcing by examining external auditors' reliance on the IAF outsourcing versus in-house IAF. This article also addresses the extent to which this relationship between IAF sourcing and external auditors' reliance is moderated by the audit firm size, external auditor's continuing professional education and experience. Participants in this study were 246 external auditors from Big and Non-Big 4 firms. This study utilized an experimental design in which IAF sourcing versus in-house was manipulated. Results indicated that IAF sourcing didn't affect the reliance decision. The results also showed that audit firm size, continuing professional education for the external auditor and external auditor experience didn't moderate this relationship. Those results are important to other researchers involved in investigating auditing quality for emerging countries.