{"id":116,"date":"2015-03-13T09:52:00","date_gmt":"2015-03-13T09:52:00","guid":{"rendered":"https:\/\/www.7sec.com\/blog\/?p=116"},"modified":"2021-06-10T13:41:39","modified_gmt":"2021-06-10T13:41:39","slug":"outsourcing-your-internal-audit-function-may-be-a-viable-proposition","status":"publish","type":"post","link":"https:\/\/www.7sec.com\/blog\/outsourcing-your-internal-audit-function-may-be-a-viable-proposition\/","title":{"rendered":"Outsourcing Your Internal Audit Function May Be a Viable Proposition"},"content":{"rendered":"\r\n

According to The Institute of Internal Auditors,<\/p>\r\n

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internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization\u2019s 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.<\/p>\r\n<\/blockquote>\r\n\r\n\r\n\r\n

OUTSOURCING?<\/h4>\r\n\r\n\r\n\r\n

Today, you can outsource almost everything. Including your internal audit function<\/a>. There are two scenarios you may want to consider here, outsourcing and co-sourcing. With pure outsourcing, you\u2019re 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.<\/p>\r\n\r\n\r\n\r\n

Through outsourcing your internal audit function, you 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.<\/p>\r\n\r\n\r\n\r\n

KNOWLEDGE TRANSFER<\/h4>\r\n\r\n\r\n\r\n

Outsourcing is always good for situations when a broader skill set and deeper industry specialization are needed. You could receive additional intellectual capital that will give you insights and recommendations on leading practices through access to leading-edge tools and methodologies. All of these will effectively transfer new knowledge and build new capabilities into your company.<\/p>\r\n\r\n\r\n\r\n

IS INTERNAL AUDIT OUTSOURCING NECESSARY?<\/h4>\r\n\r\n\r\n\r\n

There\u2019s quite a debate over the pros and cons of outsourcing the Internal Audit function. The concerns are mainly derived from the risk, responsibility, and reliability issues connected with the choice of external consultants. And that\u2019s exactly how it should be. A good team would address these concerns by giving you and fulfilling a checklist of things to demand from an outsourced internal audit service arrangement where:<\/p>\r\n\r\n\r\n\r\n