Factors Influencing the Independent Auditor’s Reliance on Internal Audit Quality in Listed Companies in Vietnam

Abstract

This article examines factors influencing independent auditors’ reliance on internal audit (IA) quality in Vietnamese listed companies, addressing the research question: What factors affect external auditors’ trust in IA work? Using a mixed-methods approach, the study combines interviews with senior auditors and surveys from 102 independent auditors to analyze determinants such as IA independence, experience, professional qualifications, department size, cooperation, audit timing, and IA report quality. Empirical findings reveal that independence and report quality significantly enhance external auditors’ trust, while department size and experience also play supporting roles. The discussion highlights that stronger IA functions improve audit efficiency and financial transparency. The study concludes that enhancing IA quality is crucial for corporate governance and investor confidence. This research contributes to the auditing literature in emerging markets and provides practical implications for regulators and firms aiming to strengthen internal controls.