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Internal Audit Outsourcing |
End-to-End Solutions
Types of internal audit outsourcing:
- Full outsourcing: where the entire function is carried out by an external provider which is generally different firm from the organisation’s external auditor.
- Partial outsourcing: where less than 100% of the internal audit services are purchased from external sources.
- Co-sourcing: A need for this type of outsourcing can arise due a temporary shortage of internal audit staff coupled with the need to meet tight deadlines; special project work; difficulties perceived in recruiting suitably qualified internal auditors; coverage of remote business sites; skill shortages or for reviewing compliance with new pan-national regulatory regimes (e.g. GDPR or Sarbanes-Oxley).
Subcontracting: this is where a specific engagement or part of an engagement is undertaken by a third party, usually for a limited period.
- Full outsourcing: where the entire function is carried out by an external provider which is generally different firm from the organisation’s external auditor.
- Partial outsourcing: where less than 100% of the internal audit services are purchased from external sources.
- Co-sourcing: A need for this type of outsourcing can arise due a temporary shortage of internal audit staff coupled with the need to meet tight deadlines; special project work; difficulties perceived in recruiting suitably qualified internal auditors; coverage of remote business sites; skill shortages or for reviewing compliance with new pan-national regulatory regimes (e.g. GDPR or Sarbanes-Oxley).
Subcontracting: this is where a specific engagement or part of an engagement is undertaken by a third party, usually for a limited period.
Benefits of Outsourcing
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. In a small internal audit function, some outsourcing can provide the audit committee with adequate assurance, particularly in key risk areas requiring a high level of expertise.
. Flexibility in staffing resources. . The organisation may gain from co-sourcing by having access to specialist expertise, innovations in the latest audit techniques, technology and the opportunity for bench-marking. . The perception that the independence of the internal auditor from management would be strengthened. . It may provide greater value for money to outsource internal audit. . Some degree of outsourcing may revitalize a long - established internal audit function. |
How IAS can help?
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IAS uses a risk-based approach that focuses on clients' business objectives, regulatory requirements and risks. With our very experienced and expert team, we can provide a multi-modal solution to meet your needs.
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