According to The Institute of Internal Auditors, “internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”
Today, you can outsource almost everything. Including your internal audit function. There are two scenarios you may want to consider here, outsourcing and co-sourcing. With pure outsourcing you’re looking at a comprehensive service, where the entire function is performed by the service provider with a focus on risk. With co-sourcing, some sharing occurs. Usually you would employ this service if you need assistance with, say, non-routine engagements that could require deeper and more profound experience and expertise.
Through outsourcing your internal audit function, you will benefit from a number of otherwise hard to get results. Your organization stands to be evaluated in a more independent and unrestricted manner, thus management will receive more objective and unbiased assistance and advice. You will also benefit from a new level of assurance and coverage of risks and will probably be able to reduce costs in the short and in the long run as well. If you want to align organizational governance with risk and compliance and be able to proactively identify and manage emerging risks, then you may want to consider outsourcing. Last, but not least, you may be able to free up some of your people to other, more important tasks. Continue reading “Outsourcing Your Internal Audit Function May Be a Viable Proposition”