The Reliability of Internal Auditors' Working Papers.

Since the issuance of SAS No. 9, independent auditors have been able to rely on work performed by their clients' internal auditors as one source of audit evidence. There are several compelling reasons for independent auditors to do so. To date, however, no research has been published which substantiates the reliability of internal auditors' working papers. This paper discusses the results of a survey, using the randomized response technique, which asked internal auditors if they have indicated in their working papers that they have completed audit steps that they, in fact, did not complete. The results of the survey tend to show that, in this regard, internal auditors' working papers are at least as reliable as those of independent auditors.