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Internal Audit Function (IAF) is considered as an important element of corporate governance. It can contribute to good corporate governance only if it operates effectively. There are many stakeholders of IAF like Board of Directors (BoD), the firm’s management, external auditors etc. All these stakeholders have their different needs and also have different perception regarding IAF. In this study, we tried to explore the perception of external auditors regarding the role and effectiveness of the IAF. For this purpose, we interviewed with eight external auditors of different audit firms. As per the findings of this study, the role of IAF includes checking the compliance and evaluation of internal controls, risk management and fraud risk management. This paper further concluded that the current role of IAF can be more effective by making IAF independent and by the induction of the personnel with right qualification, skills and relevant experience. External auditors can also get benefits from effective IAF.

Amer Shakeel, Burhan Rasheed, Dr. Muhammad Ahmed, Allah Bakhsh. (2019) Effectiveness of the Role of Internal Audit Function: A Perception of External Auditors of Pakistan, Paradigms , Vol 13, Special Issue.
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