Download or read book The Effect of Internal Audit Outsourcing on Financial Analysts' Perceptions of External Auditor Independence, Financial Statement Reliability and Investment Desirability written by Susan L. Swanger and published by . This book was released on 1998 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditor independence has long been recognized as the cornerstone of the public accounting profession. Without independence, the opinion of the external auditor is of limited value. At issue is the performance of services that fall outside the realm of traditional external auditing, specifically, providing internal audit services to clients. Because internal auditing is generally thought of as a management function, outsourcing this function to the current external audit firm calls into question the independence of that firm with respect to the audit of its client's financial statements. Further, the increased economic dependence that results when services to clients are thus expanded is thought to reduce independence of the external auditor.