The Relationship between Internal Audit and Financial Reporting Quality

As accountability requires various reliable information and audits provide third party assurance to information, auditing is a process to ascertain the validity and reliability of information to make it accountable for users. In the process of accountability, auditing provides added value through authentication of information. On the other hand, economic decision-making and resource allocation are not possible without having access to reliable information. Capital flows towards economic activities only when investors rely on timely, relevant, and reliable information to make decisions. In this process, auditing plays a vital role in determining the reliability of the information. In the process of providing timely, relevant, and reliable information, one of the factors that can help independent auditors make their work qualified, efficient, and effective is the existence of an internal audit unit in the client company and the relationship between this unit and independent auditors. Internal Auditing assesses and reportsthe adequacy of the internal control system in terms of truth, effectiveness, and efficiency of using the resources. Internal audit has a prominent role in internal control system and through strengthening controls helps management of economic entities in carrying out their responsibilities

Keywords:

Audits , Economic Entities , Efficiency , Decision-Making and Resource Allocation