Break-even point - meaning and formula

4 benefits of outsourcing internal audit function.

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.

The following are the benefits of outsourcing internal audit function:

  • Staff recruitment: There is no need for the company to recruit and train its own internal audit staff.
  • Audit skills: The outside service provider is likely to have specialist staff available such as computer audit experts. Internal auditors with IT skills may be difficult and expensive to recruit as full-time employees.
  • Cost and flexibility: The cost of an internal audit function outsourced is a variable cost rather than a fixed cost. The entity, therefore, pays for the audit time that it uses. 
  • Quantum audit work: outsourcing may be more economical for the small entity that does not have enough audit work to justify full-time internal audit work.

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