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.