Rupasinghe, M.W.N.R.Gunaratne, Y.M.C.2021-10-182021-10-18201122359877http://www.erepo.lib.uwu.ac.lk/bitstream/handle/123456789/7315/294-2011-Internal%20Audit%20Functions%20on%20External%20Auditor%e2%80%99s%20Reliance%20in%20Hotel%20Sector%20in%20Sri%20Lanka.pdf?sequence=1&isAllowed=yNote: See the PDF Version In today's world focus on corporate governance which has directed attention on roles played by internal and external auditors. Many successful organizations today are recognizing the importance of internal audit function as a key component of governance frame work within the organization. The growth of internal auditing over the years has led to more consideration for relying on internal audit work by external auditors. For the external auditor to rely on any work performed by the internal audit function the external auditor must assess the quality of the internal audit function. Internal audit function should have the considerable flexibility that external auditors have in using the work of the internal audit function should translate into a strong encouragement for companies to develop high-quality internal audit functions. SLAUSs 610 Considering the Work of Internal Audit described the relationship between external auditors and internal audit and outlining the various ways in which the external auditor can improve their efficiency and effectiveness by utilizing the work of the internal auditors. Several things to be considered in the process of establishing the internal audit work by the management in the organization. This research, attempts to identify the most significant factors in the strength of internal audit functions towards the external auditor's reliance in the organization. All business functions therefore become effective and efficiency throughout the sound internal control system by preventing duplication of work in auditing. Then the organization can achieve higher performance throughout the business functions and also sound internal control system leads to reduce external auditor's work throughout this the organization reduce the expenditure on external auditing.enEntrepreneurshipManagementOther