Internalizing the External Audit: A Transaction Cost Approach

Posted: 11 Mar 2001

See all articles by Cameron K.J. Morrill

Cameron K.J. Morrill

University of Manitoba - Department of Accounting and Finance

Janet B. Morrill

University of Manitoba - Department of Accounting and Finance

Date Written: June 2000

Abstract

Recent pronouncements by professional accounting bodies in both the United States and Canada, and concerns about lowering audit fees, both fuel and reflect a strong interest in the participation of internal auditors in the external audit. This paper presents the results of a partial least squares analysis of survey data collected from directors of internal audit departments of Canadian organizations. The results indicate that some transaction cost variables, particularly transaction-specific investment, are significantly associated with internal audit participation in the external audit.

JEL Classification: M49

Suggested Citation

Morrill, Cameron K.J. and Morrill, Janet B., Internalizing the External Audit: A Transaction Cost Approach (June 2000). Available at SSRN: https://ssrn.com/abstract=255556

Cameron K.J. Morrill (Contact Author)

University of Manitoba - Department of Accounting and Finance ( email )

Faculty of Management
Winnipeg, MB R3T 5V4
Canada
204-474-8435 (Phone)
204-474-7545 (Fax)

Janet B. Morrill

University of Manitoba - Department of Accounting and Finance ( email )

Faculty of Management
Winnipeg, MB R3T 5V4
Canada

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