External Auditing: The Influence of Internal Control on the Reliability and Integrity of Financial Statements on SMEs in Dublin.

Abstract

This research aims to determine the influence of internal control on the reliability and integrity of financial statements on SMEs in Dublin. Data was collected using questionnaires from employees that work on SMEs in Dublin and interview questionnaires with auditors from Big 4 audit firms. The data were analysed using simple percentages and tables. This research found positive influence of internal control on the reliability and integrity of financial statements analysing the internal control analysing its four categories: Internal Control Environment (Philosophy), Internal Control Organisational Structure, Internal Control Activities and Risk Assessment. We recommend recordkeeping analysis in respect to the financial transactions, employee retention as a priority for any company in Dublin and a new software so that inherit risk may be avoided and figures informed on the financial statements represents the true and fair view the company.