Cooperation and Competition Between Internal and External Auditors: Implications for Audit Quality

Abstract

This article examines the dynamics of cooperation and competition between internal and external auditors and their implications for audit quality. While collaboration between these two audit functions can significantly enhance internal control, risk management, and corporate governance, it also presents challenges related to communication, methodological differences, and role delineation. These issues can lead to tensions and competition, potentially undermining audit effectiveness.
To explore this issue, the research adopts a qualitative methodology based on semi-structured interviews conducted with professionals from audit firms, financial institutions, corporations, and regulatory bodies in Morocco. The data collected were systematically analyzed using NVivo 15, a qualitative data analysis software that enabled the identification of key themes, patterns, and relationships within the interview transcripts.
The findings reveal that while cooperation between internal and external auditors contributes significantly to improving audit quality—through better risk management, enhanced internal control systems, and more reliable financial reporting several persistent challenges hinder its full potential. These include communication gaps, methodological divergences, confidentiality concerns, and power dynamics that can foster competition rather than collaboration.
The study also highlights the importance of establishing structured mechanisms such as joint planning sessions, regular coordination meetings, and integrated training programs to foster mutual understanding and trust. By proposing practical recommendations to strengthen auditor collaboration, this article contributes to the development of more cohesive and effective audit practices, offering valuable insights for practitioners, regulators, and academic researchers alike.