Gains by co-operating with external auditor:
- The IA will benefit from the management letter as it will be used to boost the strength of ICS and may in particular reinforce the internal auditor’s recommendations to the BOD.
- The IA may use the contents of the management letter with authority to facilitate change in the company and thus increase the company’s efficiency.
- The IA will use the experience of the external auditor which accrues to him from wide exposure to various companies and such experience will be used by the IA to improve the company’s operational efficiency and its controls.
- This co-operation will boost the confidence of the management in the IA which will help in conducting efficient internal audits.
- The external auditor can advise him on ways to improve not only the ICS but also tests and programmes.