Sometimes the organization may decide to seek the internal audit services from third party instead of doing it internally. in doing so the organization is required to consider number of factors so as the benefits of doing it should not outweigh the costs.
Hereunder is the number of factors organization should consider before making decision to outsource its internal audit function:
- Independence of service provider
- Availability of resources
- Coordination with external auditors
- Retention, access to and ownership of working papers
- cost consideration
- Good standing membership in an appropriate professional organization
- Professional standards followed by the service provider
- Qualification and experience of the service provider Consultants.
- staffing, training, turnover, rotation of staff and management
- Retention of institutional knowledge for future assignment
- Access to best practices or insight to alternative approaches
- coverage of remote location, as necessary
- use of internal auditing as training ground for relevant internal promotions