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governance, control, and improvement, which is the focus of the report (Abbott et al.,2022). That
is why the internal audit is considered an essential element for a company to improve faster. By
ensuring that the entity’s existing transactions are adequately understood and managed, internal
auditors can bring value. Evaluating a company’s overall risk and identifying opportunities to
enhance risk management procedures should be a major function of internal audit (Lindow and
Race, 2002). The effective implementation of in-house versus outsourced internal audit functions
is the other research question that the current study addresses. Prior studies have largely focused
on obtaining opinions from users, analysts, and business officials regarding the relative strengths
of the two approaches, and they have generally found that outsourcing internal audits is perceived
as being of higher quality (Carey et al., 2006). Moreover, depending on the researchers’ interests
and the literature available, scholars examine several elements separately, including IA
independence, size, skills, quality, relationships with the audit committee and independent
auditors, senior management…
