The collaboration between internal and external audit as a tool for managing financial risks: a literature review

Abstract

In an environment characterized by market volatility, increasingly complex financial operations, growing compliance requirements, and rising demands for transparency, financial risk management has become a central component of organizational governance. This purely theoretical article examines the contribution of collaboration between internal and external auditing to the management of financial risks, while highlighting the impact of such collaboration on each dimension of financial risk management. Methodologically, the study adopts a qualitative approach based on a documentary review of the relevant literature.

The article argues that structured collaboration between internal and external auditors constitutes an important mechanism for reducing information asymmetry, improving organizational control, and strengthening stakeholder confidence, provided that the professional independence of each function is preserved. Based on an in-depth literature review, we developed a theoretical conceptual model linking the different dimensions of collaboration between internal and external auditing to those of financial risk management. To the best of our knowledge, no study conducted in the national context has, to date, specifically examined collaboration between these two assurance functions. This gap gives the study both theoretical and practical significance, as it contributes to enriching the existing literature and deepening the understanding of the mechanisms underlying collaboration between internal and external auditing. It therefore represents a key element of the originality of this research.

Classification JEL : M42 

Paper type : Theoretical Research