A study of how to synergize the works of internal auditors and Research Proposal

A study of how to synergize the works of internal auditors and external auditors to listed companies - Research Proposal Example Auditing has been designate as an important part of the disclosure process. The proposed research will identify the functions of internal and external audits, and determine how these functions can be synergized to ensure fairer and true audit reporting. The proposed research study intends to meet the following objectives: determine the significance of internal and external audits; determine the relationship between internal and external audit functions; and develop strategies to better audit functions in listed companies. Investment decisions are made based on financial information available at the time the decision is made. If theinvestor’s intentions are to be matched then the financial information provided must be fair and true. The concept of fairness involves impartial accounting of financial efforts. One such method of ensuring that the financial information is fair and true involves audit(Alzurqan&Al_Sufy 2011, p. 56). Audit is afinancial control toolapplied incorporate governance to acts as a safety measure against financial fraud and/or negligenceby company managers. It certifies that the stated financial information candidlyrepresentsreality, and that expenses have been sustained with regard to consistency and correctness. The principal function of audit is to:authenticatefinancial informationcorrectness and comprehensiveness;ensurefinancial information is tabulated correctly; and ensure that all expenses are approved and assured. Audit confirms that financial guidelines and instructionssatisfylegal provisions (Yuniarti 2011, pp. 84-85). Auditors are responsible for financial reporting, observance of code of ethics, risk management and compliance with pertinent regulations. The internal and external auditors work independently but on duplicated functions with the internal audit team responsible for preparing financial statements while the external audit team is