The Contribution of Integration Between Internal and External Audit in Detecting Financial Distress.

A Field Study for a Sample of Internal and External Auditors

Abstract

The purpose of this study was to reveal the contribution of integration between internal
and external audit to detecting Financial Distress. To this end, a questionnaire was developed and
distributed to 100 internal and external auditors, 70 of which were valid for the analysis using the
statistical program (SPSS v26).
The study concluded that there is complementarity (integration) and cooperation between internal
audit procedures and external audit to ensure effective and efficient performance of audit work, as
well as reduction of duplication of efforts, including reduction of costs of audit work.
The effective role of integration in the detection of Financial Distress was also highlighted, along
with analysis of financial statements and the identification of all fundamental errors and various
forms of manipulation that can lead companies to falter.